Modern investment theory pivots on the so-called “risk-return” paradigm. Keeping this in mind;answer the following question:

a.Evaluate the differing types of financial assets (i.e. equity and Bonds) and their keyproperties.

b.Explain risk and evaluate its role in determining return on financial asses viz a viz risk premium.

c.Evaluate the three major types of risk pertinent to financial assets.

d.Evaluate the influence of risk perception on risk estimation in finance.