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

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1. Risk in general; stand-alone risk; probability distribution and its relation to risk
2. Expected rate of return, ^r
3. Continuous probability distribution
4. Standard deviation, σ; variance, σ2
5. Risk aversion; realized rate of return, r
6. Risk premium for Stock i, RPi; market risk premium, RPM
7. Capital Asset Pricing Model (CAPM)
8. Expected return on a portfolio, r^p; market portfolio
9. Correlation as a concept; correlation coefficient, ρ
10. Market risk; diversifiable risk; relevant risk
11. Beta coefficient, b; average stock’s beta
12. Security Market Line (SML); SML equation
13. Slope of SML and its relationship to risk aversion
14. Equilibrium; Efficient Markets Hypothesis (EMH); three forms of EMH
15. Fama-French three-factor model
16. Behavioral finance; herding; anchoring

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Business School Assignment Instructions

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The requirements below must be met for your paper to be accepted and graded:

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Write between 750 – 1,250 words (approximately 3 – 5 pages) using Microsoft Word in APA style, see example below.

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Use font size 12 and 1” margins.

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Include cover page and reference page.

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At least 80% of your paper must be original content/writing.

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No more than 20% of your content/information may come from references.

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Use at least three references from outside the course material; one reference must be from EBSCOhost. Text book, lectures, and other materials in the course may be used, but are not counted toward the three reference requirement.

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Cite all reference material (data, dates, graphs, quotes, paraphrased words, values, etc.) in the paper and list on a reference page in APA style.

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References must come from sources such as scholarly journals found in EBSCOhost or on Google Scholar, government websites and publications, reputable news media (e.g. CNN , The Wall Street Journal, The New York Times) websites and publications, etc. Sources such as Wikis, Yahoo Answers, eHow, blogs, etc. are not acceptable for academic writing.

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