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- Demonstrate the link between net present value and internal rate of return and how they may be used in conjunction with one another to evaluate investments.Asset pricing Models provide a logical basis for computing the risk premiums anddetermining the asset price. Describe using CAPM and APT. Also differentiatebetween CAPM & APT. Also discuss its assumptions. This question is related to Investment Analysis and Portfolio ManagementCreate a classification of investment chart to distinguish between simple and nonsimple investment?
- Which of the following decision criteria is the easiest to use and very popular among investors? O Payback period. O Internal rate of return. O Average accounting return. Net present value. O Discounted return on investment.Give an example of a liquid investment and an illiquid investment. Discuss why you consider each of them to be liquid or illiquid.Consider the advantages and disadvantages of using the accounting rate of return as an investing criteria.
- (b) Explain the relationship between net present value and internal rate of return, and show how they may offer complementary methods for evaluating investments.Which of the following investment appraisal techniques does not involve discounting? a. NPV b. Discounted payback period c. ARR d. IRRA realized return is the rate of return actually earned on an investment. Group of answer choices True False
- 1.What is the relationship between an investment’s risk and its return? Please provide examples if possible. 2. Difference between Institutional Investors and Individual Investors.Explain Decision Rule for Nonsimple Investments?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?