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Question 5 a. b. Briefly discuss the relationship between risk and return as postulated by the Capital Asset Pricing Model (CAPM). [5 marks] Within the

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Question 5 a. b. Briefly discuss the relationship between risk and return as postulated by the Capital Asset Pricing Model (CAPM). [5 marks] Within the framework of the Efficient Market Hypothesis (EMH), briefly describe how the financial securities are being priced. [5 marks] Using an example, briefly describe the process of valuation and explain why it is important for a financial manager to understand this process. (5 marks] Brief explain why wealth maximisation is a preferred goal for an organisation as opposed to profit maximisation? [5 marks] [TOTAL: 20 MARKS]

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