Question: 1.Explain the difference between micro and macro risk. 2.Which portfolio has a greater standard deviation? Why? Explain 3.Which portfolio has the higher expected return according

1.Explain the difference between micro and macro risk.

2.Which portfolio has a greater standard deviation? Why? Explain

3.Which portfolio has the higher expected return according to CAPM? Explain.

4.Why do we get the same expected return for Portfolio A and B (according to CAPM) even though Portfolio A has more standard deviation?

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