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Hi David, Please see and correct the following: Reading: R10.P1.T1.Bodie Page number : 5 Error : In example 10.1 solution, it was given as = 10% + 1.2 × (3% − 4%) = 10% − 1.2% = 9.2% whereas it should be 10 % -1.2 % = 8.8% Thanks, Shikhar

No thats not become expected risk ..see the example given in the readings. Expected Risk is like fee of school you need to pay to study..already determined..not something which is at horizon and not fixed and confirmed.