Question #1: Risk of Individual and Stocks, Stock Valuation, and Stock Market Equilibrium

For this discussion you can choose which question you respond to. Feel free to respond to both, however only one is required. Please respond to ONE of the following questions:
Question A

Should portfolio effects impact the way investors think about the risk of individual stocks?
Question B

Stocks, stock valuation, and stock market equilibrium are all components of interest to potential investors. Briefly describe the legal rights and privileges of common stockholders and what is a financial option? What is the single most important characteristic of an option?


Question #2: Financial Market Risk

Write a 2-3 page paper. In your paper include the following:

    An explanation on how risk plays a role within financial markets and how did Bernard Madoff change the way in which individuals viewed the stock market and their investing plans.
    Please include information and topics from the chapter readings to justify your explanation and reasoning.

Include a title page and 3-5 references. Only one reference may be from the internet not (Wikipedia). Please adhere to the Publication Manual of the American Psychological Association (APA), (6th ed. 2nd printing) when writing and submitting assignments and papers