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pp.n.), then otnel peers posts by Sunday of Week 1 (5 p.m.). Pspond to two 1) Small companies have had the highest returns and the greatest volatility. However, in some industries, like the banking industry, the small firm is going the way of the dinosaurs. An extraordinarily large percentage of the banking business is controlled by large banks, especially now that the subprime crisis and longevity of the recession have caused many small banks to fail. What happens to the systematic risk within an industry that has become an oligopoly? How will a company's size affect unsystematic risk? The number of banks that are "too big to fail" has increased. What has that done to the discount rate appropriate for valuing banks? 2) Most of us have had the obnoxious experience of receiving stock tips from some clever spammers who manage to penetrate even the best spam filters. These stocks have been labeled "spam stocks." One site claims they could be a sign of a recovering economy. Some stocks are absolute scams, and others are legitimate, albeit extremely risky. However, if one had a large enough portfolio, unsystematic risk would theoretically be eliminated. How much volatility would a large portfolio of these spam stocks have compared to a portfolio of stocks from the NASDAQ? Post your response by Wednesday of Week 7 (5 p.m.), then respond to two other peers' posts by Sunday of Week 7 at (5 p.m.)