Please complete the attached assignment after you watch the Finance Lecture – Risk, Return and CAPM by Brad Simon.
Question 1: According to the video, how do we define risk?
Question 2: According to the video, how would the risk of a portfolio consisting of stocks from a variety of economic sectors compare to one consisting of stocks from just one sector? What is the technical finance term for this concept?
Question 3: According to the video, what is the difference between std. dev. and beta in terms of measuring risk?
Question 4: According to the video, what are some caveats associated with CAPM?
Question 5: According to the video, what is the difference between systematic and unsystematic risk? How is each type of risk impacted by holding a well-diversified portfolio?