Question: 71. According to the CAPM what is a simple way for investors to form their optimal portfolios 8/. How would a decrease in the costs

 71. According to the CAPM what is a simple way for
investors to form their optimal portfolios 8/. How would a decrease in
the costs of financial distress (the costs relate to the firm's bankruptcy,

71. According to the CAPM what is a simple way for investors to form their optimal portfolios 8/. How would a decrease in the costs of financial distress (the costs relate to the firm's bankruptcy, the higher the debt level, the more the costs of bankruptcy) affect corporate capital structure? (10 point) 10/. Briefly explain the various theories of capital structure? (15 point) 11/. Differentiate between Systematic and Unsystematic risk? (10 point)

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