The certainty-equivalent technique

Assignment Help Financial Management

Reference no: EM131910346

1. NASDAQ IS best described as:

1. a modern day trading floor with locations in Chicago and London

2. an electronic communication network

3. an electronic network of securities dealers

4. an internet brokers market

5. a primary market

2. The certainty-equivalent technique:

1. is a method which avoids the need to quantify risk perception.

2. is an inexpensive method of determining an appropriate discount rate.

3. is particularly useful when final decisions are made by a committee.

4. none of the above.

3. Discuss the advantages of using CAPM in determining the cost of capital. Are there any shortcomings of using CAPM?

Reference no: EM131910346

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