1.a)What is an Investment portfolio?

b)Create a portfolio, and solve for the portfolio expected return.

c)What is the Capital Asset Pricing Model ?

What are the important conclusions that this model offersregarding investment portfolios ?

2.a)What is the Weighted Average Cost of Capital ?

Explain and derive each component part.

b)Estimate Apple's WACC.

c)What is capital budgeting?

d)Derive the net Present Value methodology of capital budgeting, andexplain the use of WACC.