Investors need to know how much risk they have to take to confidently expect a certain percentage return. Likewise, managers want to know what return shareholders require so that they can decide how to meet those expectations. Select 23 of the topics below and discuss how they each influence financial decisions regarding risk and return:

• The capital asset pricing model (CAPM)
• The constantgrowth model
• Compute forward-looking expected return and risk
• Risk premiums