1.

Explain how to conduct stock valuation for those companies that do not payout

dividends.

2.

Explain why portfolio volatility is less than the average standard deviation of

individual stocks included in the portfolio.

3.

Explain why the beta of a high-end luxury products manufacturer is higher than that of agricultural producer.

4.

Explain why financial leverage leads to higher stock beta.

5.

Explain why capital structure merely determines how risk is allocated between

bondholders and stockholders.

6.

Why did Dell go private and what do you think of impatient capitalism that Michael Dell mentioned