PART A - Topic: CAPM
Your topic is:
"A Critical Assessment of The Capital Asset Pricing Model (CAPM)"
You are required to
- Describe the Capital Asset Pricing Model, including the assumptions underlying the theory
- Explain the relationship between the Security Market Line and the Capital Market Line, using diagrams and examples to illustrate your explanation
- Briefly set out arguments in favour of - and against - the theory, outline its uses and make a critique of its underlying assumptions
- Identify any alternatives which have been suggested in place of CAPM
- Conclude with an overall assessment of the theory and state any recommendations you may have from your study.
- Conclusion - a brief overall assessment of the CAPM theory.
Details of the Assignment requirements, suggested points for detailed examination and penalties for late lodgment are in the Subject Outline.
You are required to complete this essayin Groups of 2 or 3 or 4 or 5 people.All members of the Group should come from the same Tutorial class. You may consult and discuss the Assignment topic with others, but you must write up your Essay yourself/ves. Penalties for copying and plagiarism are severe.
You should follow the following typing conventions:
Times New Roman font (at minimum , 12 pitch) 1.5 line spacing and A4 paper
Top, bottom, left and right margins to be at least 2.5 cm from the edge of thepage; and WORD LIMIT - 1,000
5 references