Course materials

1. Unit III Journal Instructions What is the relationship between risk and
return
Unit III JournalInstructionsWhat is the relationship between risk and return on investment
(ROI)? What level of risk are you currently able to accept? What are the factors your
decision is based on?Your journal entry must be at least 200 words in length. No references
or citations are necessary. Unit III Case StudyInstructionsDiversified Risk Stock
PortfolioFor this case study, you will create a portfolio of five to eight stocks that
demonstrate diversified risk. List the stocks along with their current price and previous 1-
year and 5-year rates of return. Below the list of stocks, address the issues described below.
Explain the difference between portfolio risk and stand-alone risk. Briefly explain why you
selected each stock and how this investment portfolio would have less risk than selecting
just one stock. How does risk aversion affect a stock’s required rate of return? Explain the
distinction between a stock’s price and its intrinsic value.Your case study should be at least
two pages in length, not counting the title and reference pages. You are required to cite and
reference at least your textbook and stock data source. Use APA format to cite in-text and
reference citations.