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8. we learn about the portfolio risk measured as beta and return. Discuss the difference between diversifiable risk and market risk, and explain how each

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8. we learn about the portfolio risk measured as beta and return. Discuss the difference between diversifiable risk and market risk, and explain how each type of risk affects well-diversified investors. Describe what the CAPM is, and illustrate how it can be used to estimate a stock's required rate of return. Discuss how changes in the general stock and bond markets could lead to changes in the required rate of return on a firm's stock

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