1. Let's assume I have never taken a business course and I inquire of you to describe to me what cost of capital means, how would you do it?Provide an example.
2. All companies have a cost of capital as well as people on a personal level.From a personal perspective, what do you believe is an acceptable cost of capital to a regular person?How are you basing answer or what are you measuring it against?Use an example to support.(Be sure to support your response with content from this week's reading material).
3. Introducing risk, chapter 8 looks into "Beta" as a concept.If you were shopping for a single stock, how would you use "Beta" to determine whether or not it met your personal risk tolerance.Be sure to elaborate your understanding here by using an example.
4. Let's pretend that you own a portfolio consisting of $250,000 of long-term US government bonds. Is your portfolio considered riskless?If not, what sort of risks do you see?Be sure to list at least 2....