1. What's the difference between Standard Deviation and Beta?
2. Please provide a few examples of systematic and unsystematic risk factors that are impacting your retirement portfolio (if you don't have one, imagine you have one)?
3. Go to the web and research for the beta of Apple and HP. What's your understanding of these betas?
4. When talking about cost of capital, it is said that required return is the same than cost of capital. How's that (one is return and the other one is cost)?
5. If a company's D/E equity ratio is 1/2, what are the corresponding weights for Debt and Equity?
6. Dividends....would you prefer your stocks to pay dividends or would you rather earnings are reinvested into the company? Why?
7. Why are taxes are applied to cost of debt (to get after-tax cost of debt) but taxes are not applied to cost of equity?