Question: 1.What do we mean by risk aversion, and what evidence indicates that investors are generally risk averse? 2.What are the basic assumptions behind the Markowitz

1.What do we mean by risk aversion, and what evidence indicates that investors are generally risk averse?

2.What are the basic assumptions behind the Markowitz portfolio theory?

3.What do we mean by risk, and what are some measures of risk used in investments?

4.How do we compute the expected rate of return for a portfolio of assets?

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