Importance of Diversification in The Formation of CAPM Research Paper
Investigate different factors that influence the valuation of equity and in your report assume the CAPM is used to form the Weighted Average Cost of Capital (WACC).
Your assignment should demonstrate thoughtful consideration of the ideas and concepts presented in the course by providing new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards. Be sure to adhere to the Academic Integrity Policy.
Instructions:
Write a five to seven page APA report not including title and reference pages answering the questions below. Do not just answer the questions, but use the questions to formulate your report. Your paper should demonstrate thoughtful consideration of the ideas and concepts presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards. Be sure to adhere to University’s Academic Integrity Policy.
Questions to be answered in your report:
Write a research report that outlines the topics
Determine how diversification is important in the formation of CAPM.
Provide numerical illustrations for CAPM.
Research the validity of CAPM.
Assignment Objectives:
The purpose of this assignment for the student is:
Use information technology to complete academic writing and research.
Present written information in a persuasive, organized, clear, and concise manner relying on research, data, and analytics.
Use acceptable paragraph and sentence structure with minimum grammar, punctuation, and spelling errors; and demonstrate appropriate word choice, tone, and format.
Explain and calculate the costs of different capital componentsdebt, preferred stock, retained earnings, and common stock.
Explain why the weighted average cost of capital (WACC) is used in capital budgeting.
Requirements of the assignment:
All papers must follow all APA requirements including an abstract. (10% deduction if not)
All papers must have a reference page. The textbook is an acceptable source.
Body of the paper 5 -7 pages, no more or less.
Title page, abstract, and reference pages are required. However, they do not count towards any page count.
Writing should reflect an understanding of the chapter’s basic concepts, thorough research, and logic and critical thinking skills.
The introduction is attention getting with sufficient background information to establish the topic and a clear thesis statement.
The conclusion summarizes the main points and leaves the reader with a strong comprehension of the paper’s significance and the author’s understanding.
Grammatically correct No spelling, grammar, or mechanics errors.
Do not use the first person. (10% deduction if used)
Rubric used for grading assignment:
Levels of Achievement
Criteria Exemplary Accomplished Developing Beginning
Assignment Components 20 PointsSubmission completely integrates all required components into a coherent, well-organized whole, and relevant connections between individual components (when applicable) are clear, insightful, and follow the appropriate order.
15 Points
Submission is missing at least one required component, though the remaining components are integrated into a coherent, well-organized whole, and relevant connections between individual components (when applicable) are generally clear, and follow the appropriate order.
10 Points
Submission is missing at least two required components, though the remaining components are integrated into a somewhat coherent, organized whole, and/or relevant connections between individual components (when applicable) are somewhat unclear, and/or do not follow the appropriate order.
5 Points
Submission is missing several required components, and/or components are not integrated in a clear and/or organized manner, and/or relevant connections between individual components (when applicable) are unclear, and do not follow the appropriate order.
Quality of Content
20 Points
Demonstrates a thorough understanding of the content, context, audience, and purpose of the assigned task(s). Utilizes appropriate, relevant, and compelling content to demonstrate mastery of the subject throughout the submission.
15 Points
Demonstrates competent understanding of the content, context, audience, and purpose of the assigned task(s). Utilizes appropriate, relevant, and compelling content that demonstrates competence throughout the submission.
10 Points
Demonstrates adequate understanding of the content, context, audience, and purpose of the assigned tasks(s). Utilizes appropriate and relevant content that demonstrates adequate understanding throughout the submission.
5 Points
Demonstrates minimal understanding of the content, context, audience, and purpose of the assigned tasks(s). Utilizes content that demonstrates minimal understanding within the submission.
Critical Analysis
10
