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- What is the difference between CAPM beta and cash-flow beta (from certainty equivalency approach)? Can just use bullet points for this one because it is urgent, I need this by today. Thank you!What is the CAPM beta? How is it different from Cash Flow beta? Provide intuitive explanation and formulae for both.Describe the Probabilistic Cash Flow Analysis?
- What is the difference between Cash Flow Risk and Interest Rate Risk? Please explain it clearly so that I can easily understand. Thank you.Which one of the following is the formula that explains the relationship between the expected returnon a security and the level of that security's systematic risk?Select one:a. Time value of money equationb. Unsystematic risk equationc. Expected risk formulad. Market performance equatione. Capital asset pricing modelWhy are we more likely to need to calculate the PV of cash flow streams than the FVof streams?
- Cite the advantages brought about by an effective cash flow forecastingDescribe the development of discounted cash flow techniques (DCFs)?Which is least likely correct about security valuation?a. The calculated or determined value considers the stream of future cash flows.b. The calculated or determined value equals the market price.c. The calculated or determined value considers the risks involved and the opportunity cost.d. The calculated or determined value allows the investors to evaluate whether a security isovervalued or undervalued.e. All of the above