Dear tutor,

Pls answer all the questions

Thanks!!

Q1) (a) Compare and contrast the advantages and limitations of the original Capital Asset Pricing Model (CAPM) to the following main alternatives asset pricing models:

- The zero-beta CAPM

- The three-moment CAPM

- The intertemporal CAPM

- The Arbitrage Pricing Theory (APT)

Support your discussion with evaluating empirical evidence and research into the main alternatives asset pricing models and contrast these conclusions with the original Capital Asset Pricing Model (CAPM) methodology.

(Intro of asset pricing models with 3 advantages each and 3 limitations each, with concluding analysis at end)

pls write in detail explanation. more than 500 words.

(b)Pls define and explain how each of the following is used in corporate finance and support your answer with examples:

-nominal interest rate (NIR)

-effective annual interest rate (EAR).

(c) What is the difference between debt and equity and provide real-life examples? How do they relate to financial risk? Explain in detail