INVESTMENT ANALYSIS (FINA 350)
1. What do we mean by risk aversion and what evidence indicates that
investors are generally risk averse? Explain in detail.
2. Explain the basic assumptions behind the Markowitz portfolio theory?
3. What is meant by risk and what are some of the alternative measures of
risk used in investments?
4. What are the main assumptions of the capital asset pricing model? Explain
5. What is a risk-free asset and what are its risk-return characteristics?
6. Define portfolio management. How do we measure diversification for an
7. What is systematic and unsystematic risk? How they affect the business?
8. How does the goal of a passive equity portfolio manager differ from the
goal of an active manager? Explain.
Investment Analysis and Portfolio Management
Frank K. Reilly & Keith C. Brown