Assignment on risk and return

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Reference no: EM133122945

Topic: Risk and Return.

  1. Of the historical calculation, ninety-nine percent estimation, and two-thirds estimation techniques, which one is the most useful when forecasting dispersion from a capital investment? Explain your reasoning.
  2. A project has a downward sloping market line. This is not good. Do you agree? Explain your reasoning.
  3. The expected return on the market portfolio will be higher than the return on all assets in the market. Do you agree? Explain your reasoning.
  4. Business risk and financial risk are essentially the same thing. Do you agree? Explain your reasoning.
  5. How does the indifference curve touching the market line show how investors make decisions to invest? Explain your reasoning.
  6. If investment is efficient, it is also acceptable. Do you agree? Explain your reasoning.

Reference no: EM133122945

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