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15. a. Explain Interest Rate Risk b. Explain Reinvestment Rate Risk 16. Equity investors are rewarded only for taking risk. Exposure to risk is not

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15. a. Explain Interest Rate Risk b. Explain Reinvestment Rate Risk 16. Equity investors are rewarded only for taking risk. Exposure to risk is not rewarded. 17. If you are holding stock A in a diversified portfolio, and Emilia is holding it outside a diversified portfolio, which of you will be willing to pay more for the stock and why? Diversification enables one to maintain expected return without 18. 19. Total Risk is the sum of risk and risk. It is measured by

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