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Briefly explain the meaning of β(beta) in finance and detail how it is calculated.
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- explain efficient Market Hypothesis" and "Behavioral Finance" briefly.Using an appropriate diagram(s), explain the concept of direct and indirect finance.Consider the model, C = N(d1)St − N(d2)Ke−rt, where d1 =[ln st/K+ (r +σ2/2) t ] /σ√t and d2 = d1 − σ√t. State the above model and explain the importance of the model in mathematics of finance.