Finance Assignment

Finance Assignment

Introduction

This paper intends to explore and answer two questions regarding finance. The first question deals with the concept of capital asset pricing model (CAPM), if an individual may use CAPM to make his personal investment decisions.

Further, second question is analyzes the financial markets. The main focus is on that how companies shall raise their finance in order to survive in this distress financial turmoil. In this situation, which method shall be more effective, if the companies raise capital by debt or equity?

Discussion

CAPM

The CAPM model helps to determine the rate of return required by investors. It considers the ...