Risk & Return and the CAPM

1. Risk & Return and the CAPM. 
Based on the following information, calculate the required return based on the CAPM:
Risk Free Rate = 3.5%
Market Return =10%
Beta = 1.08

2. Holding Period Return 
Based on the following information calculate the holding period return: 
P₀ = $11.00
P₁ = $11.40
D₁ = $1.02

3. Risk and Return, Coefficient of Variation 
Based on the following information, calculate the coefficient of variation and select the best investment based on the risk/reward relationship.
Std Dev. Exp. Return
Company A 7.4 13.2
Company B 11.6 18.9

4. Sources of Risk & Diversification – convertible bond. 
Address each source of risk from the portfolio perspective and how diversification impacts them.