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1) What is the conceptual relationship between risk and return? What does the empirical evidence say about this relationship?

2) Define diversification. How does one diversify their portfolio?

3) Define beta coefficients. Provide two examples.

the greater the risk the greater the return
Diversification takes away diversifable risk, but not Idosyncriatic risk
Beta coefficients reffers to what makes the mkt move such as oil increase, interest rate change etc

This sounds like homework.

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