7 Which of the following are synonyms: Required Rate of Return, Opportunity cost, expected rate of return?

8 Explain the term market risk premium and estimate what that number is currently. Show your calculation.

9 T or F? Higher risk investments give the investor a higher return. If this is true, why dont we all invest in the riskiest investments we can find?

10 If a company has a Beta = 1.7, this stock is more risky than the S&P 500 index. That means its price fluctuates more than the market average. We can also say that the companys stock price is more volatile than average. Whats good about a Beta > 1 and whats bad about it?