a) Distinguish between systematic risk and unsystematic risk, and explain the significance of the  distinction in portfolio analysis.  b) Explain what is meant by a share’s beta value.   c) Outline the main practical problems in using the CAPM in capital investment decisions.   d) Discuss the assumption in CAPM analysis that corporate debt has a zero beta value

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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a) Distinguish between systematic risk and unsystematic risk, and explain the significance of the 
distinction in portfolio analysis. 

b) Explain what is meant by a share’s beta value.
 
c) Outline the main practical problems in using the CAPM in capital investment decisions.
 
d) Discuss the assumption in CAPM analysis that corporate debt has a zero beta value

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