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Week 8 Discussion: Let's discuss the following (based on the assigned and recommneded reading): 1- Is Paying a Premium for Certain Securities Worth the Price?

Week 8 Discussion: Let's discuss the following (based on the assigned and recommneded reading):

1- Is Paying a Premium for Certain Securities Worth the Price? Are portfolio managers willing to pay a premium for securities that reduce the systematic (market) risk of their portfolios? If so, why pay a premium?

2- What Makes a Beta Coefficient so Great? What makes a beta coefficient important when constructing a portfolio?

3- What can You Diversify? If portfolio risk equals market risk, can the portfolio risk be diversifiable?

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