Unit 6: Critical Assessment Forum

Directions

Initial Critical Assessment

Respond to one of the following topic to present to your peers in a professional analysis using a minimum of 350 words.

  Topic

• Risk versus Return.  Investors will choose among various portfolios based upon their individual risk tolerance.  Using our text and external sources, explain how investors can create an efficient portfolio?
• Critically analyze the three main assumptions of the Capital Asset Pricing Model (CAPM) and why is the market portfolio efficient according to CAPM?
• Using CAPM, how can investors determine a stock’s expected return? Critically explain the components of the CAPM and what errors may occur when using CAPM?

Your critical response should have a minimum of two sources published in the last 12 months which should be used to support the content within the postings, proper in-text citations.  Your responses should be professionally written and correctly formatted references should be prepared consistent with the APA. The list of references should be physically positioned at the end of the postings.

Unit 6: Critical Assessment Forum

Introduction

Within the graduate business curriculum, students are expected to research topics and provide linkages between the literature and your topic selection. Professional writing, tone, and grammar is expected and use of a minimum of two sources of literature published in the last 12 months (other than our text) is required in your initial critical assessment post.  Active participation in these forums facilitates learning and allows you to critically analyze a chosen topic and learn from your peers within the forum.

Directions

Initial Critical Assessment

Respond to one of the following topic to present to your peers in a professional analysis using a minimum of 350 words.

  Topic

· Risk versus Return.  Investors will choose among various portfolios based upon their individual risk tolerance.  Using our text and external sources, explain how investors can create an efficient portfolio?

· Critically analyze the three main assumptions of the Capital Asset Pricing Model (CAPM) and why is the market portfolio efficient according to CAPM?

· Using CAPM, how can investors determine a stock’s expected return? Critically explain the components of the CAPM and what errors may occur when using CAPM?

Your critical response should have a minimum of two sources published in the last 12 months which should be used to support the content within the postings, proper in-text citations.  Your responses should be professionally written and correctly formatted references should be prepared consistent with the APA. The list of references should be physically positioned at the end of the postings.