| Assignment 2 Grading Criteria |
Maximum Points |
| Correctly calculated the beta coefficient for the company and explained its meaning and significance to the firm. |
20 |
| Correctly calculated the Concordia’s required rate of return on any new investments and explained the significance of this number to the investing activities of the firm. |
20 |
| Correctly determined the function for the SML and plotted this function, graphically. |
16 |
| Explained the significance of the SML in terms of the information it provides and the significance to the firm and in terms of future investments. |
16 |
| Correctly evaluated the new investment and made a recommendation as to whether the investment should go forward, explaining the rationale. |
16 |
| Used correct spelling, grammar, and punctuation and followed APA style guidelines. |
