Question: 1. Distinguish between random risk and market risk. 2. Summarize three other types of investment risks that may affect returns. 3. Explain how transactions costs

1. Distinguish between random risk and market risk.
2. Summarize three other types of investment risks that may affect returns.
3. Explain how transactions costs and leverage may increase or decrease investment returns.

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1 Random risk is the risk associated with the fact that any one investment may do well or poor... View full answer

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