Respond to the following comments:

a. “Risk is not variability. If I know a stock is going to fluctuate between $10 and $20, I can make myself a bundle.”

b. “There are all sorts of risk in addition to beta risk. There’s the risk that we’ll have a downturn in demand, there’s the risk that my best plant manager will drop dead, there’s the risk of a hike in steel prices. You’ve got to take all these things into consideration.”

c. “Risk to me is the probability of loss.”

d. “Those guys who suggest beta is a measure of risk make the big assumption that betas don’t change.”