QUESTION $3$

The capital asset pricing model provides a risk$-$return trade$-$off in which risk is measured in terms of beta. depicts the total risk of a security.

measures risk as the coefficient of variation between security and market rates of return. provides a risk$-$return trade$-$off in which risk is measured in terms of the market volatility.

QUESTION $8$

In the present value bond valuation model, risk is generally incorporated into the timing of cash flows $($assuming more risky cash flows are received early$).$ discount rate or required return. cash flows $($making some smaller if they are more risky$).$ maturity amount.