http://student.land/for-each-of-the-scenarios-below-explain-whether-or-not-it-represents-a-diversifiable-or-an-undiversifiable-risk-please-consider-the-issues-from-the-viewpoint-of-investors/For each of the scenarios below, explain whether or not it represents a diversifiable or an undiversifiable risk. Please consider the issues from the viewpoint of investors. Explain your reasoning. <br />There's a substantial unexpected increase in inflation. <br />There's a major recession in the U.S. <br />A major lawsuit is filed against one large publicly traded corporation. <br />Use the CAPM to answer the following questions:In one page explain what you think is the main 'message' of the Capital Asset Pricing Model to corporations and what is the main message of the CAPM to investors? <br />Find the Expected Rate of Return on the Market Portfolio given that the Expected Rate of Return on Asset "i" is 12%, the Risk-Free Rate is 4%, and the Beta (b) for Asset "i" is 1.2. <br />Find the Risk-Free Rate given that the Expected Rate of Return on Asset "j" is 9%, the Expected Return on the Market Portfolio is 10%, and the Beta (b) for Asset "j" is 0.8. <br />What do you think the Beta (β) of your portfolio would be if you owned half of all the stocks traded on the major exchanges? Explain.
