How to measure security return for single and multiple periods.

• Different measures of risk for a single and a portfolio of stocks.

• The relationship between risk and return.

• The intuitive reasoning behind the Capital Asset Pricing Model.

• What are the competitors to CAPM.

• Be able to apply CAPM, DCF, Risk Premium, and Fama-French approaches to estimate cost of equity for firms.

• Be aware of estimation issues in applying CAPM to estimate divisional required returns.

• Be able to estimate cost of debt, preferred stock and cost of capital for listed and unlisted firms.

• Be able to calculate beta for listed and unlisted firms/projects.

• Be aware of factors influencing a firm’s cost of capital.