1.Risk & Return and the CAPM.

Based on the following information, calculate the required return based on the CAPM:
Risk Free Rate = 3.5%
Market Return =10%
Beta = 1.08

2. Holding Period Return

Based on the following information calculate the holding period return:

P₀ = $10.00
P₁ = $12.00
D₁ = $1.22

3.

4. Sources of Risk & Diversification – convertible bond.

Address each source of risk from the portfolio perspective and how diversification impacts them.

Your response should be at least 250 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.