Paper instructions:
would love you to look at the resources provided to give you an idea of what I have covered in Uni so you can based the essay around that and if you can make references to Corporate financial management by glen Arnold that would be great because it’s the core text for this module….also if you could provide me with an approximate cost that would be great. Thanks – the brief is as follow:
THE CAPITAL ASSET PRICING MODEL
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‘The Capital Asset Pricing Model (CAPM)’ has dominated academic literature and greatly influenced the practical world of finance and business for almost half a century; as a way to measure systematic risk. Researchers in the 1980s and 1990s have questioned the relationship between systematic risk, measure beta, and returns on securities. Despite heavy criticism of the model from the academic community, CAPM has reached new heights of popularity in the outside world (Arnold pp 269). Hundreds of thousands have studied the CAPM in
universities and now hold key positions ready to make decisions based on the model. Does CAPM-beta really provide the answer to the risk-return relationship? Does CAPM provide a good account for pricing a firm’s debt or equity? Hence is CAPM of relevance to corporate managers?
Explain and discuss this contention
Assignment Suggestion
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This assignment relates to the lecture on portfolio theory and the capital asset pricing model. To answer it satisfactorily, you will need to give some thought to the question and to discuss the relationship between risk and return, define the fundamental features of the capital asset pricing model and discuss the empirical evidence relating to the CAPM. The main body of your report should focus on why the academic community are turning away from the CAPM.
The latter part of the question requires more thought, and you should try to highlight features of the CAPM which lends itself to the context of corporate managers. In the development of your answer you are expected to include relevant economic and financial concepts and where appropriate (you may if you wish make use of relevant diagrams).
PLEASE READ: the assignment suggestion part of the questions are what specifically need to be covered in the essay to be satisfactory. Any questions – please ask. Thanks
NOTE: References should be around 7-10 to include Glen Arnold – Corporate Financial Management as stated previously