Investments; Risk Types, CAPM, the Beta and the Use of NPV and IRR

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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.