Q1. (a) Discuss the TWO (2) problems that might come up in actual application of the capital budgeting (4 marks) (b) Explain the possibility that a risky asset could have a beta of zero and beta of negative. What does the Capital Asset Pricing Model (CAPM) predict the expected return on such assets? (6 marks) (c) Describe the TWO (2) costs of shortages. (4 marks) (d) Explain the FIVE (5) drawbacks in merger and acquisition. (10 marks)