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7. What is meant by the investor's required rate of return? Why is this important? (2pts) 8. How do we measure the riskiness of an
7. What is meant by the investor's required rate of return? Why is this important? (2pts) 8. How do we measure the riskiness of an asset? Give an example (2pts) 9. Determine which one of these three portfolios dominates another. Portfolio Blue has an expected return of 12% and standard deviation of 18%. The expected return and standard deviation of portfolio Yellow are 15% and 17%, and for the Purple portfolio are 14% and 21%. Explain your rationale. (2pts)
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