The rubric..

The term "risk" is an important one in the field of finance. Imagine that you are the CFO for Martin Enterprises (ME) and need to write a memo based upon the work of Markowitz and Sharpe/Littner to inform your Board about risk. Develop and produce a solid essay) on what is the relationship between risk and return; how risk can be measured using the variance of a stock's returns, and how Modern Portfolio Theory can be used to mitigate risk while maximizing return. Then, describe the Capital Asset Pricing Model and how it can be utilized to manage portfolio risk. Finally, explain to the Board how you would use CAPM to manage risk for the shareholders of ME. Student describes appropriately the relationship between risk and return and how risk drives returns Student does discuss the meaning of the variance or its meaning for returns and its use in creating portfolios Student does demonstrate knowledge of MPT or its ability to manage risk while demonstrating knowledge of the efficient frontier Student does demonstrate knowledge of CAPM and how it used by investors to manage portfolio risk as well as how investors can create portfolios tailored to the investors exact risk tolerance level Well written with no deficiencies in sentence construction, paragrap LI