1. Which is the first step in a structured equity security analysis and valuation?
A. Prospective Analysis
B. Accounting Analysis
C. Financial Analysis
D. Business Strategy Analysis
E. Implementing Valuation Models
2. The capital asset pricing model:
a. assumes the market has a beta of zero and the risk-free rate is positive.
b. rewards investors based on total risk assumed.
c. considers the relationship between the fluctuations in a security?s returns versus the market?s returns.
d. applies to portfolios but not to individual securities.
e. assumes the market risk premium is constant over time.