PART C:Explain the underlisted.
• the concept of risk aversion and utility – (MO 1)
• how to allocate funds between a risky asset and a risk free asset – (MO 1)
• Sharpe Ratio – (MO 1,2)
• Optimal Capital Allocation – (MO 1)
• standard deviation and return for one and two security portfolios – (MO 1,2)
• the minimum variance combinations of two securities – (MO 2)
• covariance and correlation coefficients – (MO 2)
• the importance of diversification
