Highlight the main features of the following as they relate to corporate finance (a) Modern Portfolio Theory (b) Capital Asset Pricing Model (c) Arbitrage Pricing Theory (d) Risk and Capital Budgeting ...

a Modern Portfolio Theory This theory is a hypothesis introduced by Harry Markowitz and he has introduced it in his popular paper Portfolio Selection ...

Highlight the main features of the following as they relate to corporate finance. (a) Modern Portfolio Theory

Question:

Highlight the main features of the following as they relate to corporate finance.
(a) Modern Theory
(b) Arbitrage Pricing Theory
(d) Risk and Capital Asset Pricing Model
The Capital Asset Pricing Model (CAPM) describes the relationship between systematic risk and expected return for assets, particularly stocks. The CAPM is a model for pricing an individual security or portfolio. For individual securities, we make use of the security market line (SML) and its... Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...