In capital markets,profits,gain,interest,dividends are the expected return sin exchange for risk assumed by the investor.

a) Discuss the concept of risk and return with respect to investment

b) Compute the expected return on a security with a beta of 1.4, risk free rate of 12%, and market rate of return of 19%.

c) Given a dividend growth rate of 5%, current dividend of GHS8 and beginning price of investment of GHS40.00, what will be the rate of return on the investment using the Gordons model?

d) Discuss five assumptions of the Capital Asset Pricing Model.