Capital Asset Pricing Model
❖What is this model about and its application in practice?
❖What is beta meant?
❖What is a Security Market Line (SML) and what is this meant?
❖You should be able to explain and draw a graph about SML.
Capital Budgeting
❖How to apply CAPM How to apply CAPM in practice to plan capital investment projects.in practice to plan capital investment projects.
❖Determination of discount rates.
❖Using NPV technique and decision rules