8. What are the inflation, default risk, liquidity and maturity risk premiums? 9. What is the difference between beta and standard deviation? 10.

8.      What are the inflation, default risk, liquidity and maturity risk premiums?

9.      What is the difference between beta and standard deviation?

10.  What does a beta of greater than 1.0 mean? What does a beta of less than 1.0 mean? How is the required return of a stock affected by each beta (greater than 1.0, less than 1.0)?

11.  What is the difference between systematic and unsystematic risk? Which can be diversified away? Can you reduce the risk of your portfolio down to zero? If you don't diversify, are you paid to hold the extra risk that you take?

12.  If required return on a stock exceeds expected return, what should you do? If expected return exceeds required return, what should you do?

13.  Does the market risk premium change over time?

14.  What does it mean if an investor is risk averse? What types of securities should they hold?

15.  What is the difference between positively and negatively correlated stocks?