T 2s In pontfolio analysis, we often use ex post (historical) returns and standard deviations, Jes pile the taet that are really interested in ex ante (future) data. 29 Market risk refers to the tendency of a stock to move with the general stock market. A stock with above-average market risk will tend to be more volatile than an average stock, and its than 1.0. beta will be greater r corporations earn returns for their stockholders by acquiring and operating tangible and intangitble assets. The relevant risk of each asset should be measured in terms of its effect on the risk of the irsm stockholders T Risk aversion" implies that investors require higher expected returns on riskier than on less riskys 32 A poy s a docunsent giving one party the authority to act for another party, including the power to vote hares of comooo stock Proxies can be importapt tools relating to control of firas