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University of Utah FINANCE 3040 Chapter 12 1)Review how to calculate the beta of a portfolio

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University of Utah

FINANCE 3040

Chapter 12

1)Review how to calculate the beta of a portfolio.

2. Review how to calculate CAPM. Order of operations counts!
3. What is the beta of the market?
4. What is the beta of the risk-free asset?
5. What is the Security Market Line?
6. What is the appropriate discount rate for a project? The company’s cost of capital or should it depend on the project’s risk?