Sample Essay on:
Investments; Risk Types, CAPM, the Beta and the Use of NPV and IRR

Here is the synopsis of our sample research paper on Investments; Risk Types, CAPM, the Beta and the Use of NPV and IRR. Have the paper e-mailed to you 24/7/365.

Essay / Research Paper Abstract

The 12 page paper answers two questions. The looks at the different types of risk; undiversifiable and diversifiable risk, the role of beta within CAPM (capital asset pricing model), its limitations and the way it may be used. The second part of the paper looks at the time value of money, why discounting models are used to assess investments along with the use and comparison of net present value (NPV) and internal rate of return (IRR). The bibliography cites 5 sources.

Page Count:

12 pages (~225 words per page)

File: TS14_TEfinquest2.rtf

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Unformatted sample text from the term paper:

of the stocks and shares to rise and fall, even where there is a generalised pattern. The way that the prices are determined are the result of supply and demand, where there are more people selling than buying and the supply is greater than the demand the share price will fall until either sufficient sellers withdraw their shares from the market or the lower price attracts more buyers and a point of equilibrium is reached. Conversely, when share prices rise it is because the demand is outstripping the supply and the price increasing until sufficient buyers withdraw or more sellers are attracted to sell their shares and a new point of equilibrium is reached (Nellis and Parker, 2000). When investors make their investment they will be aware that these fluctuation take place, the market is forever finding new points of equilibrium. When investors make the investment they will try to look ahead and project the way in which the share price is likely to move, but there are risks. If we consider some of the major events such as the failure of Enron and the events of 9/11 these saw the entire market fall, all shares suffered and there was little that the company investors could do to avoid these risk, however there have also been events that have impacted on individual companies, such as the restatement of accounts or the loss of key personnel, or even a valuable patent coming to an end. These are events that impacted on only the specific companies and not the entire market. The risks that impact on the entire market cannot be avoided if the investors make an investment, but the risks to the individual company may be avoided if that company is not in an investment, or the impact may ...

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