How would you explain the concept to your incoming freshman

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Discussion :

Imagine that you are a new college professor developing your first lecture on the Capital Asset Pricing Model. How would you explain the concept to your incoming freshman class?

In your discussion, include the relationship between the expected rate of return on a particular investment and the expected rate of return for a portfolio with multiple investments. What is the relationship between systematic and unsystematic risk? Analyze how the risk relationship related to the beta of an investment.

In your reply post, comment on someone else's explanation. Point out where you think there needs to be more clarification. If you consider the explanation to be complete, explain why.

Reference no: EM132282229

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