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1) Let us start with what is the difference between a real and a financial asset?
2) What is the risk-return tradeoff?
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- The value-at-risk is the most commonly used measure of market risk. a. Write a Short History of Value-at-Risk b. Explain the methods used to determine Value-at-RiskWhat does it mean when you have a risk-free guaranteed rate? Give an example as well as the explanation.Why does standalone risk differ from portfolio risk? Explain and give examples! Relates your answer with CAPM!
- The security line described?Which one of the following is the slope of the security market line? Market risk premium Risk-free rate Beta coefficientAnother name for the expected value of an investment would be: Answer a. The mean value b. The upper-end value c. The certain value d. The risk-free value
