What are the benefits of diversification to an individual

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Reference no: EM13205313

Please wirte the difinition of each answer and use some examples, pictures and math to explain each questions:

1. List and discuss the three lessons of finance. What are the implications of these lessons for (a) individuals and/or (b) managers of the firms?

2. Discuss the concept of semi-strong form efficiency

3. "Risk and return are unrelated." Discuss

4. Using numerical examples define the NPV rule. What are the advantages and disadvantages of this method? (Your answer should include a reference to the objective of the firm and a discussion of independent versus mutually exclusive projects).

5. Compare and contrast futures and options. Your answer should include a definition of each.

6. What are the benefits of diversification to an individual? What is the key factor determining the extent of these benefits?

7. Discuss the relative merits of the alternative methods of calculating the cost of capital for a division of a company.

Reference no: EM13205313

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