Discussion Post: Regarding Risk
Investors need to know how much risk they have to take to confidently expect a certain percentage return. Likewise, managers want to know what return shareholders require so that they can decide how to meet those expectations.
Respond to the following in a minimum of 175 words:
1) Select 2-3 of the topics below and discuss how they each influence financial decisions regarding risk and return:
2) The capital asset pricing model (CAPM)
3) The constant-growth model
4) Compute forward-looking expected return and risk
5) Risk premiums
The response must include a reference list. One-inch margins, double-space, Using Times New Roman 12 pnt font and APA style of writing and citations.