Problem 1: Define non-diversifiable risk. Explain why, in theory, non-diversifiable risk is considered the only relevant risk for determination of an investor's required return on a risky asset?
Problem 2: What is the efficient market hypothesis? Discuss the three forms of the efficient market hypothesis.
Problem 3: Briefly describe the following types of mergers: i) horizontal, ii) vertical, iii) congeneric and iv) conglomerate.