Question: 1. Explain the difference between the required rate of return and the expected rate of return. If they are different at a specific point in

1. Explain the difference between the required rate of return and the expected rate of return. If they are different at a specific point in time, what does it mean?

2. What is the difference between an expected return and a total holding period return?

3. How does investing in more than one asset reduce risk through diversification?

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