1. Basic concepts - Risk Select the term that corresponds to each of the given descriptions. (Note: There is only one possible answer for each description.) Descriptions The condition in which the expected return on a security equals its required return, and there is no pressure on its price to change. The risk of an asset when it is the only asset in an investor's portfolio The rate of return expected to be realized from an investment, calculated as the mean of the probability distribution of its possible returns. The potential for variability in the possible outcomes associated with an investment. This model determines the appropriate required return on a security as the sum of the market's risk-free rate and a risk premium based on the market's risk premium and the security's beta coefficient. MONAK ERTLENE Terms htt 20 43

1. Basic concepts - Risk Select the ferm that corresponds to cach of the given descriptions. (Note: There is only one possible answer for each description.)