1. NASDAQ IS best described as:
1. a modern day trading floor with locations in Chicago and London
2. an electronic communication network
3. an electronic network of securities dealers
4. an internet brokers market
5. a primary market
2. The certainty-equivalent technique:
1. is a method which avoids the need to quantify risk perception.
2. is an inexpensive method of determining an appropriate discount rate.
3. is particularly useful when final decisions are made by a committee.
4. none of the above.
3. Discuss the advantages of using CAPM in determining the cost of capital. Are there any shortcomings of using CAPM?