Question
1.Explain the difference between micro and macro risk. 2.Which portfolio has a greater standard deviation? Why? Explain 3.Which portfolio has the higher expected return according
1.Explain the difference between micro and macro risk.
2.Which portfolio has a greater standard deviation? Why? Explain
3.Which portfolio has the higher expected return according to CAPM? Explain.
4.Why do we get the same expected return for Portfolio A and B (according to CAPM) even though Portfolio A has more standard deviation?
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
13th edition
134417216, 978-0134417509, 013441750X, 978-0134417219
