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Question B3 1. Modern investment theory pivots on the so-called risk-return paradigm, Keeping this in mind; answer the following questions: a. Evaluate the differing types

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Question B3 1. Modern investment theory pivots on the so-called "risk-return" paradigm, Keeping this in mind; answer the following questions: a. Evaluate the differing types of financial assets (ie, equity and Bonds) and their key properties. 5 Marks b. Explain risk and evaluate its role in determining return on financial asses viz a viz risk premium 5 Marks c. Evaluate the three major types of risk pertinent to financial assets. 5 Marks d. Evaluate the influence of risk perception on risk estimation in finance. 5 Marks

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