Does the market adjust for risk?  How?  Is the adjustment timely enough?

 

Some people say the P/E ratio may not be a reliable indicator of a stock’s expected future performance.  Why is that?

Is the stock valuation model a useful tool?  Why or why not?

 

What is the Capital Asset Pricing Model?  How can it be used to calculate a businesses required return?  Is it useful or too theoretical? 
Note: Do not cut and past your reply from the internet or the text or you will not receive credit.  I am interested in your own opinion.

    • 11 years ago
    FIN 571 Week 2 DQs
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