## Prepare a PowerPoint or Prezi Presentation to define the following terms

Prepare a PowerPoint or Prezi Presentation to define the following terms, using graphs or equations to illustrate your answers where feasible.

Risk in general; stand-alone risk; probability distribution and its relation to risk

Expected rate of return, ^r

Continuous probability distribution

Standard deviation, σ; variance, σ2

Risk aversion; realized rate of return, r

Risk premium for Stock i, RPi; market risk premium, RPM

Capital Asset Pricing Model (CAPM)

Expected return on a portfolio, r^p; market portfolio

Correlation as a concept; correlation coefficient, ρ

Market risk; diversifiable risk; relevant risk

Beta coefficient, b; average stock’s beta

Security Market Line (SML); SML equation

Slope of SML and its relationship to risk aversion

Equilibrium; Efficient Markets Hypothesis (EMH); three forms of EMH

Fama-French three-factor model

Behavioral finance; herding; anchoring

Solution preview

Risk in general is defined as the probability that some event that is not favourable shall happen. For example, an asset risk is basically the cash flow for the asset will be less the expectation or it shall be unfavorable. A stand-alone risk is just part of the overall risk and refers to the risk of an investment holding only a single asset………………………..

APA

1149 words