3. Describe the relationship represented by the security market line. Explain what will happen to the price of an asset if its expected return plots above the security market line. 9. Describe the efficient market hypothesis in the context of the share market. Explain why you would agree or disagree with the following statement: "If the efficient market hypothesis holds. the |Capital Asset Pricing Model is completely useless in the practice of corporate finance.\" 10. Describe the accounting rate of return method. Describe the major shortcomings of using the accounting rate of return method to Evaluate a proposed investment project. 11. Explain two advantages of using NP'v' method. Describe the conditions where IRR rule and NPV rule would give a conflicting acceptfreject decision. 12. Explain how non-cash expenses affect the estimation of a proposed project's after- tax incremental free cash flows. Describe the two different adjustment methods that can be used to take the effect of noncash expenses into account when estimating the incremental after-tax free cash flows. 13. Explain to your company's board of directors why using NF'llIf method might lead to a wrong investment decision. Describe three types of real options that can be used in capital budgeting to enhance investment decisions