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INFORMATION GENERATION PROCESS:
Information is the product of different human activities and events. Activities are undertaken by individuals or by organisations in pursuance of certain objectives. Events are things that happen, occur or take place. If there has been no activity or an event taking place, there would be no information. Imagine a situation when, on a day, the entire population of the world goes into a slumber. Next day, there would be no news (although subsequently this would be news which would hit newspaper headlines).
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QUESTION (a) Derive and explain the Capital Market Line. Make and state all necessary assumptions (b) Explain clearly how you would test for- (i) the size effect (ii)
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