1. What is the mean-standard deviation frontier, and what is the mean-variance-efficient (MVE) portfolio?
2. What is the prediction of the CAPM with respect to optimal portfolio choice?
3. What is the prediction of the CAPM with respect to the expected return on any security?
4. What is the beta of a security?
5. Why might it be useful to estimate the beta for a stock from returns on stocks within its industry rather than from the stock itself?
6. What does it mean for an equity market to be integrated or segmented from the world capital market?
7. What would you expect to happen to the risk-free rate and equity returns when a segmented country opens its capital markets to foreign investment?
8. What accounts for the home bias phenomenon?