1. What is the limitation in using variance as measure of risk? Explain this point with an illustration. Derive the capital asset pricing model and show that it provides a better measure in valuing a risky asset.
For start-up business how a proper market research will ensure entrepreneurial success?
2. According to the text, which of the following types of loan has the highest interest rate?
New automobile loan
Used automobile loan
Personal loan
Credit card loan
All of these have the same interest rate