A.
What is meant by the coefficient of variation? How is it used as a measure of risk?
Explain the terms diversification and correlation in the context of forming portfolios.
Describe the meaning of a “state of nature” and explain how this concept is used to provide expected measures of return and risk.
What are the differences among the weak, semi strong, and strong forms of the efficient market hypothesis?
B.
Explain marketability risk and marketability premium.
Why is risk an increasing function of time?
Discuss how the standard deviation, a statistical measure of dispersion, is used in investment analysis?