Book: Principles of Managerial Finance Answer all questions except #12

8-7 What does the coefficient of variation reveal about an investment's risk that the standard deviation does not? - REVIEW QUESTIONS 8-8 What is an efficient portfolio? How can the return and standard dei tion of a portfolio be determined? How d do REVIE W QUESTIONS 8-11 How are total risk, nondiversifiable risk, and diversifiable risk related? Why is nondiversifiable risk the only relevant risk? 8-12 What risk does beta measure? How can you find the beta of a portfolio? 8-13 Explain the meaning of each variable in the capital asset pricing model (CAPM) equation. What is the security market line (SML)