a.Distinguish between systematic and unsystematic risk and explain the significance of the distinction portfolio analysis  b. Describe the assumption in CAPM analysis that corporate debt as a zero beta value  c. Based on both the CAPM and Modigliani- Miller proposition (11), explain the support of relevant equations, how changes in the debt equity ratio can change a firm's equity beta

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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a.Distinguish between systematic and unsystematic risk and explain the significance of the distinction portfolio analysis 

b. Describe the assumption in CAPM analysis that corporate debt as a zero beta value 

c. Based on both the CAPM and Modigliani- Miller proposition (11), explain the support of relevant equations, how changes in the debt equity ratio can change a firm's equity beta 

 

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