This pack of FIN 402 Week 3 Discussion Questions shows the solutions to the following problems:

DQ1: What is the difference between systematic and unsystematic risk? How is the beta coefficient used to assess risk? Is it better to maximize return or minimize risk? Why?

DQ2: What is the relationship between inflation and interest rates? How does this relationship affect asset prices? How does the unemployment rate affect interest rates?

DQ3: What factors must be taken into consideration when creating an investment portfolio? How must a portfolio