Question 1- Discuss briefly the single-person decision theory under the conditions of uncertainty.

Question 2- Discuss the role of net income in firm valuation under the ideal conditions VS. its role under the presence of uncertainty. Does the net income have information content in these two conditions? What basic assumption needs to be changed to make the net income to have information content?

Question 3- Discuss the CAPM model: its content/formula, assumptions and limitations?

Question 4- What does the efficient market mean? How is it achieved?