(a) The dividend growth model can be used in determining the cost of equity capital.
This model, however, has some weaknesses.
Outline the weaknesses of the model.
(b) The following information is available regarding a mutual fund:
Return = 13% Risk (σ) = 16% Beta (β) = 0.9
Risk free rate = 10%
(i) Calculate Sharpe ratio
(ii) Calculate … Read the rest