2. Application of the Capital Asset Pricing Model in daily lives.

3. "How to allocate limited resources to their best use is the very first and fundamental principle that you guys learn in a first course in both economics and finance." Explain how the concepts and techniques covered in the various topics (time value of money, stock and valuation, bond and valuation, risk and return, capital and budgeting) in this course can help address the issue. [Hint: Think about how NPV, as an investment decision rule, addresses the efficient allocation of limited resources problem. Specifically, the role of required rate of return in the decision-making process.]