Compute forward-looking expected return and risk

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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 2-3 of the topics below and discuss how they each influence financial decisions regarding risk and return:

-The capital asset pricing model (CAPM)

-The constant-growth model

-Compute forward-looking expected return and risk

-Risk premiums

Reference no: EM132951459

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