finance

Part 1 .

1. How is a Beta of a stock measured?

2. Explain the meaning of Characteristic Line with its slope, X axis, and Y axis. How do stock investors use the line?

3. Explain the meaning of Security Market Line with its slope, X axis, and Y axis. How do stock investors use the line?

4. Explain Capital Asset Pricing Model (CAPM) with its components.

5. How is a portfolio beta measured?

Part 2

1. Compare Break Even Analysis, Sensitivity Analysis, Scenario Analysis.

2. For Accounting Profit Break Even, how do we calculate the number of units sold on a project?

3. For NPV Break Even, how do we calculate the number of units sold on a project?

4. Describe how to measure the risks through Standard Deviation, Beta, and Risk Premium.

5. How does the diversification effect work in a portfolio investment?

6. Define and List examples of Specific (Diversifiable) Risk and Market (Undiversifiable) Risk.