1)There are usually two types of risk related to investments of the stocks in portfolio and they could be said to be systematic risk and unsystematic risk.

Unsystematic risk are also known as firm specific risk and industry specific risk which are specifically related to a particular firm or a particular industry and these risks are diversifiable so these risks can be diversified to a large extent and can even be eliminated so there can be unsystematic risk in the portfolio if better diversification policies to be followed.

when we are purchasing a stock there is a firm specific risk related to specific factors of the firm and when we are combining the portfolio with a large group of stocks which are not just limited to one sector but different sectors of the economy than we are adopting the principles of diversification in which unsystematic risk is eliminated by investing into various stocks.

Examples of unsystematic risk should be related to demand and supply of a particular industry or litigation against particular firm.

Systematic risk refers to market risk and these will be including all such risks for operating into the economy and this can never be eliminated and these will be related to all such studies which are attributed to the market sectors like inflation as well as interest rates and change in the political rules and regulations so these are applicable to all the entities which our existing in the economy.

systematic risk are not diversified and they can only be managed to some extent by allocation into different asset classes.

Diversification can completely eliminate the unsystematic risk but it can not impact the systematic risk to any extent, so diversification is only effective against and systematic and firm specific risk.

2)

A: Debtors or Accounts Receivable (Money that customers owe due to sales made on credit)

B: Current liabilities (All of the firm’s liabilities expected to be due in the next one year)

C: Creditors or Accounts payable (Money that owes to its suppliers due to purchases made on credit)

D: Preference shares (A hybrid security that has the characteristics of both debt and common equity)

E: Intangible assets (Includes trademarks, patents and goodwill from previous acquisitions)

The following statements given accurately describe the Balance Sheet:

#2: Uses ‘Current’ to mean an account with an expected life of less than one year

#4: Shows asset, liability and equity account values on a specific date.

Regarding others which are not correct:

Balance sheet shows data as on a particular date and not for a period of time.

3)

1. Mean : This gives you the average value of the returns over a period of time by taking a weighted average value of the returns over the interval. Here, weights can be probabilities assigned for the respetive returns. So, basically Mean alue of return gives you an expected average rate of return over a period of time.

2. Variance: This gives you the spread of the returns from mean value of returns. This basically gives us an idea of deviations of random vairable (returns) from mean value.

3. Skewness: Skewness gives us an idea of ow the values of random vairable (reurns) are spread around mean returns, whether values are positively skewed (most of the values falling on right hand side of mean returns), negatively skewed (most of the values falling on left hand side of returns) or zero skewness (prefect normal distribution with values lying evenly around mean value of return).

4. Kurtosis: Kurtosis gives us an idea of how fat are the tails of distributions from the mean value, explaining us how frequent extreme deviations or outliers are from the mean value.

following are 3 categories of Kurtosis

) A value of zero (Mesokurtic) implies the tails die down similar to normal distributions

b) A negative value (Platykurtic) implies thinner tails and flatter tops (for symmetric distributions) or more extreme deviations from the mean (e.g. Uniform distribution)

c) A positive value (Leptokurtic) implies heavier tails and peakier tops giving us extreme values