Explain the meaning and differences between the correlation coefficients “p” in the traditional portfolio and the beta “B” coefficients in the capital asset pricing model (CMPL) approach

Bhagi

In your first job with TBL Inc. your task is to consider a new project whose data are shown below. What is the project's Year 1 cash flow? The annual operating cash flows of the project can be calculated as follows: OCF = {[Sales - Operating Costs]*(1-Tax Rate)} +  (Depreciation * Tax Rate) Sales revenues $225,250 Depreciation $72,602 Other operating costs $92,000 Tax rate 28%

Explain the differences between an ‘efficient portfolio’ and an ‘efficient market'

The profitability index is another method to evaluate capital investments. If you are trying to compare investments of different sizes, why is the profitability index a better way to do this when compared to the net present value method?

According to the capital asset pricing model, assets with Lower; lower; unsystematic Higher; higher, unsystematic Lower; higher; unsystematic Higher; higher; systematic Higher; lower; systematic betas have expected returns because betas quantify the degree of risk. Please fill in the blank.

how was capital asset pricing model (CAPM) created? GIVE reference

Which of the following best describes an investor's risk-return trade-off function?  Group of answer choices Indifference curves Capital Asset Pricing Model Characteristic line Efficient portfolio Arbitrage Pricing Model

Identify and briefly discuss three criticisms of beta as used in the capital asset pricing model.

How does standard deviation and variance affect portfolio risk, more so than expected return?