Assignment Papers-Describe how variance and standard deviation are used to measure the variability of individual stocks.
- Describe how variance and standard deviation are used to measure the variability of individual stocks.
- Explain how an investor chooses the best portfolio of stock to hold.
- Discuss how diversification is used to mitigate risk in the portfolio.
- Describe the relationship between risk and expected return (CAPM).
- Explain how the risk-free rate, market risk premium and stock beta are used to calculate expected returns using the capital asset pricing model (CAPM).
- Explain how cyclicality of revenues and operating leverage help determine beta.
