Capital Asset Pricing Model & Modern Portfolio theory
What are the difference between Capital Asset Pricing Model and Markowitz’s Modern Portfolio Theory?
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Capital Asset Pricing Model concurrently simplified Markowitz’s Modern Portfolio Theory (MPT), made this more practical and introduced the concept of specific and systematic risk. While MPT has arbitrary correlation among all investments, CAPM, in its fundamental form, only links investments via the market as a complete.
What factors does Standard and Poor’s analyze in finding out the credit rating it assigns a sovereign government?In rating a sovereign government, S&P’s analysis centers on an assessment of the degree of political risk and econom
B. Show how Kareem's WACC would change if the tax rate dropped to 25 percent and the estimated cost of equity capital were based on a risk-free rate of 7 percent, a market risk premium of 8 percent, and a systematic risk measure or beta of 2.0.
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Great Corporation has the following capital situation. Debt: One thousand bonds were issued five years ago at a coupon rate of 11%. They had 20-year terms and $1,000 face values. They are now selling to yield 9%. The tax rate is 37% Preferred stock: Two thousand shares of preferred are outstanding
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How is Poisson process defined?
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