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Define the following terms, using graphs or equations to illustrate your answers where feasible. Risk in general; stand-alone risk; probability distribution and its relation to

  1. Define the following terms, using graphs or equations to illustrate your answers where feasible.
  1. Risk in general; stand-alone risk; probability distribution and its relation to risk
  2. Expected rate of return
  3. Continuous probability distribution
  4. Standard deviation, s; variance
  5. Risk aversion; realized rate of return
  6. Risk premium for Stock i; market risk premium, MRP
  7. Capital Asset Pricing Model (CAPM)
  8. Expected return on a portfolio; market portfolio

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