1. Which factors can negatively impact a organization shareholder ? Which of the factors are more significant. Give real life examples’
2. Castle Black Camping is twice as risky as the average stock. The market should earn 11% and the risk free rate is 2%. What is a fair return for CBC? (20%)
3. What does it mean to say a bank is ‘too big to fail’? What ‘moral hazard’ results from a bank being ‘too big to fail’?