Why is the fixed asset riskier than current asset?

What are some advantages of matching the maturities of claims against assets with the lives of theassets financed by those claims? Is it feasible for afirm to match perfectly the maturities of all assetsand claims against assets? Why might a firm deliberately mismatch some asset and claim maturities?

How does the efficient frontier change if we add the risk free asset into theportfolio of risky assets? Explain both the cases when borrowing at the riskfree is allowed and when it is not. Support your explanations with a graph.

What factors contribute to the risk of overusing financial leverage?

what are the benefits/risks of financial leverage?

What happens if liability exceeds assets? What will happen and what does it mean?

What is the best way to measure of risk for an asset held in isolation, and which is the best measure for an asset held in a diversified portfolio?

What are the unique risk characteristics of commodities?

If a financial asset has an expected return that is greater than what is necessary to compensate for its risk, what will bring the return back in line with equilibrium?

Explain the following statement: “An asset held as part of a portfoliois generally less risky than the same asset held in isolation.”