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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?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92072012
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