1. What is the goal of diversification? How does it work? What are it limitations? Do you have any examples of how you used the principle of diversification?
2. What is beta? How is it computed? What does it measure? What is its formula? What is the beta of treasury bill? What is the beta of market portfolio? What is the beta of Walmart stock? What is the beta of Google stock? What is the beta of your own portfolio?
3. What are various way of measuring risk? Which method is more appropriate under what conditions?
4. Describe some methods of risk management.

5. Describe the steps in the capital budgeting process?