How do we measure the riskiness of an asset how should the


Question: 1. a. What is meant by the investor's required rate of return?

b. How do we measure the riskiness of an asset?

c. How should the proposed measurement of risk be interpreted?

2. What is (a) unsystematic risk (company-unique or diversifiable risk) and (b) systematic risk (market or nondiversifiable risk)?

3. What is a beta? How is it used to calculate r, the investor's required rate of return?

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