FIN 571 NERD Education Specialist /fin571nerd.com FIN 571 NERD Education Specialist /fin571nerd.com | Page 33

FIN 571 Week 2 DQ 2
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Suppose rf is 5% and rM is 10%. According to the
SML and the CAPM, an asset with a beta of −2.0
has a required return of negative 5% [= 5 − 2(10 −
5)]. Can this be possible? Does this mean that
the asset has negative risk? Why would anyone ever invest in an asset
that has an expected and
required return that is negative? Explain
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FIN 571 Week 2 Individual Assignment Business Structure
Advice
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Write a 350 to 700 word response to the following e-mail:
Dear Consultant,
I am currently starting a business and developing my business plan.
I'm in need of some advice on how to start forming my business. I am
not sure exactly how it will be financed and whether or not I want to
take on partners. I am interested and willing to learn the intricacies of
my options to determine how to best proceed with my plan.
Please advise on what my options are, the advantages and
disadvantages of each, and possible tax consequences for each
scenario?
Respectfully,
John Owner
Click the Assignment Files tab to submit your assignment.
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FIN 571 Week 2 Individual Assignment Ethics and Finance