ST-1 c. KEY TERMS Define each of the following terms using graphs or equations to illustrate your answers whenever feasible: a. Risk; stand-alone risk; probability distribution b. Expected rate of return, Standard deviation, o; coefficient of variation (CV) d. Risk aversion; risk premium (RP); realized rate of return, Risk premium for Stock i, RP, market risk premium, RPM f. Expected return on a portfolio, ip; market portfolio g. Correlation; correlation coefficient p h. Market risk; diversifiable risk; relevant risk i. Capital asset pricing model (CAPM) j Beta coefficient, b; average stock's beta, bA k. Security market line (SML) equation e. ST-1 c. KEY TERMS Define each of the following terms using graphs or equations to illustrate your answers whenever feasible: a. Risk; stand-alone risk; probability distribution b. Expected rate of return, Standard deviation, o; coefficient of variation (CV) d. Risk aversion; risk premium (RP); realized rate of return, Risk premium for Stock i, RP, market risk premium, RPM f. Expected return on a portfolio, ip; market portfolio g. Correlation; correlation coefficient p h. Market risk; diversifiable risk; relevant risk i. Capital asset pricing model (CAPM) j Beta coefficient, b; average stock's beta, bA k. Security market line (SML) equation e