1. Explain the terms ‘country risk’ and ‘political risk’ and evaluate how they might be usefully applied in practice.(more details)
2. How can you measure and interpret the market risk, or beta, of a security?
3. What is the relationship between the market risk of a security and the rate of return that investors demand of that security?
4. Discuss the capital asset pricing model in general, the CAPM method of determining expected returns, and how the SML can be used to help predict the movement of a Stock's price.