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5) a) What is the capital asset pricing model, or CAPM? What does it tell us about the required return on a risky investment? 4

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5) a) What is the capital asset pricing model, or CAPM? What does it tell us about the required return on a risky investment? 4 marks. b) What is the main difference between a stock dividend and a stock split? 2 marks e) Briefly discuss the three main uses into which a firm may put its buyback, or repurchased stocks. 3 marks. d) Briefly discuss any five key factors to be considered when choosing a venture capitalist. 5 marks

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