Now we will focus on Risk in a Portfolio Context. See Section 8-3.

Match each of the terms below with their definitions and descriptions

- A. B. C. D. E. F. G. This equation represents the return that reflects the risk remaining after diversification - A. B. C. D. E. F. G. This represents the weighted average of the expected returns on individual components - A. B. C. D. E. F. G. The tendancy of two variables to move together - A. B. C. D. E. F. G. The degree of the relationship between two variables - A. B. C. D. E. F. G. Market Portfolio - A. B. C. D. E. F. G. The S&P 500 often is used to empirically measure this variable

The variable that shows the extent to which a stock's returns move up or down with the market
- A. B. C. D. E. F. G.	Measures Market Risk
- A. B. C. D. E. F. G.	The return above and beyond the risk free rate needed to compensate invesotrs for taking extra risk by investing in stocks
- A. B. C. D. E. F. G.	The difference between the market rate of return and the risk free rate

A.	Correlation
B.	A portfolio consisting of all stocks
C.	Market Risk Premium
D.	Capital Asset Pricing Model
E.	Expected Return on a Portfolio
F.	Correlation Coeficient
G.	Beta