Question: Define each of the following terms using graphs or equations to illustrate your answers whenever feasible: a. Risk; stand-alone risk; probability distribution b. Expected rate

Define each of the following terms using graphs or equations to illustrate your answers whenever feasible: a. Risk; stand-alone risk; probability distribution b. Expected rate of return, r c. Standard deviation, sigma; coefficient of variation (CV) d. Risk aversion; risk premium (RP); realized rate of return, r e. Risk premium for Stock i, RP_j; market risk premium, RP_M f. Expected return on a portfolio, r_p; market portfolio g. Correlation; correlation coefficient rho h. Market risk; diversifiable risk; relevant risk i. Capital asset pricing model (CAPM) j. Beta coefficient, b; average stock's beta, b_A k. Security market line (SML) equation

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