Question
1. What is difference between diversifiable risk and market risk? Give real world examples. Is it beneficial to diversify a portfolio with international securities and
1. What is difference between diversifiable risk and market risk? Give real world examples.
Is it beneficial to diversify a portfolio with international securities and if so/not then why?
2. Two alternative approaches, the P/E multiple and EVA approaches, were presented. Explain each approach and how you might use each one to value a common stock.
3. What is proxy a fight? Give a real-world example of a proxy fight at a company and explain why it occurred.
Name a company with classified stock. What do you believe are the benefits of that particular company's corporate structure?
For a firm that has adequate access to capital markets, is it more reasonable to assume reinvestment at the WACC or the IRR? Explain
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