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Diversified Risk Stock Portfolio

For 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.