)Understand how capital gains and percentage returns are calculated

Please answer each question with a min of 150 words, ALL should be in your own words (no cutting and pasting from another source)

1. Understand how capital gains and percentage returns are calculated.
2. Explain the difference between average stock returns and risk-free returns.
3. Describe the significance of US equity risk premiums as a method of comparison with other countries.
4. Describe how variance and standard deviation are used to measure the variability of individual stocks.
5. Explain how an investor chooses the best portfolio of stock to hold.
6. Describe the relationship between risk and expected return (CAPM).
7. Explain how the risk-free rate, market risk premium and stock beta are used to calculate expected returns using the capital asset pricing model (CAPM).
8. Explain how cyclicality of revenues and operating leverage help determine beta.
9. Describe the dividend discount model (DDM) approach and how is it different than CAPM.
10. Compare and contrast the various types of swap contracts.

References:

Ross, S., Westerfield, R., Jaffe, J. & Jordan, B. (2016). Corporate finance (11th edition). New York, N.Y. McGraw-Hill Education.