Problem
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:
Select 2 to 3 of the topics below and discuss how they each influence financial decisions regarding risk and return:
a) The capital asset pricing model (CAPM)
b) The constant-growth model
c) Compute forward-looking expected return and risk
d) Risk premiums
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.