Reference no: EM133386410

Question: Research and identify one security that you believe is an attractive investment opportunity. It can be for a long position (expecting a price increase) or a short position (expecting a price decrease). Support your recommendation with evidence of fundamental or technical analysis. You do not have to perform fundamental or technical analysis by yourself from scratch, as you can use free available resources to screen and identify securities. An example of a free resource is Yahoo! Finance.

Additionally, you may want to describe, in your own words, the insights, doubts, queries, and serendipitous findings when presented with the content in this module and discuss how you came to understand the concept. This should not be undigested information copied from course materials or internet resources.

What this module covered: The module shows how index models of security returns can simplify the search for efficient portfolios and the interpretation of the risk characteristics of individual securities: systematic versus unsystematic risk. The capital asset pricing model, referred to as the CAPM, is introduced in this module. The model predicts the relation we should observe between the systematic risk of an asset and its expected return. Applications and implications of the CAPM are examined in the module.