Published on December 1, 2015
For more classes visit www.snaptutorial.com 1) Risk and probability Micro-pub, Inc., is considering the purchase of one of two microfilm cameras, R and S. Both should provide benefits over a10-year period, and each requires an initial investment of $4,000. Management has constructed the following table of elements of rates of return and possibilities for pessimistic, most likely, and optimistic results. 2) Portfolio Analysis you have given the expected return data shown in the first table on three assets –F, G, and H – over the period 2016-2019. Using the assets, you have the isolated the three investment alternatives. 3) Capital asset princing model (CAPM) Use the capital asset princing model to find the required return.