1. Basic concepts - Risk and return Aa Aa Professor Isadore (Izzy) Invest-a-Lot retired two years ago from Exceptional College, a small liberal arts college in Oregon after teaching corporate finance and investment theory for 35 years. Yesterday, Izzy appear on EC LIVE, a television show produced for the students, faculty and staff on the EU campus and the local communities. Samantha Silvertongue is the host of EC LIVE, and one of Professor Izzy's former students. The following is a transcript of the interview. Unfortunately the software that transcribes the interview into written form failed to understand several words and phrases used in the interview. To complete the transcript and demonstrate your knowledge of the risks and returns of investing, please select the best answer from each dropdown menu Samantha Good morning, Professor Invest-a-Lot. I'd like to welcome you to EC LIVE, and thank you for coming in today to offer us insights into the basics of investing. I remember your course well, and while my grades didn't always reflect great success, I was always very interested in the material and the possibility of using the concepts and techniques when the opportunities arose. Izzy Good morning, Samantha, and please call me, Izzy. Thank you for the invitation to discuss one of the important fundamentals to sound investing: an appreciation of the relationship between the objective or outcome of your investment, that is its the likelihood of receiving it, or the investment's , and Samantha Let's begin with a generalization regarding the financial markets. How are people buying and selling investments in the financial markets generally assumed to react to risk? And, how do the markets define "risk