    CAPITAL ASSET PRICING MODEL ANALYSIS OF PROJECT                             
THE CAPITAL ASSET PRICING MODEL  STUDIES THE RISK-RETURN                        
IMPACT OF AN INVESTMENT PROPOSAL UPON AN INVESTOR'S PORTFOLIO                   
OF STOCKS AND OTHER INVESTMENTS. THE MODEL GIVES THE EXPECTED                   
RETURN FOR AN INVESTMENT GIVEN THE EXPECTED RETURN FOR THE                      
MARKET AS A WHOLE, THE RISK-FREE(I.E. U.S.TREASURY BOND)                        
INTEREST RATE, AND THE VOLATILITY OF THE RETURN ON THE INVEST-                  
MENT WITH RESPECT TO THE REST OF THE MARKET. A VOLATILITY OF                    
1 MEANS THE RETURN ON THE INVESTMENT WILL CHANGE JUST AS THE                    
MARKET CHANGES, A VOLATILTY GREATER THAN 1 MEANS THE INVEST-                    
MENT'S RETURN MOVES IN THE SAME DIRECTION AS THE MARKET BUT                     
AT A MORE RAPID RATE. VOLATILITY OF 0 MEANS THE RETURN ON THE                   
INVESTMENT IS INDEPENDENT OF MARKET MOVEMENT. NEGATIVE                          
VOLATILITY MEANS RETURN ON THE INVESTMENT AND THE MARKET MOVE                   
IN OPPOSITE DIRECTIONS.                                                         
PRESS ENTER TO CONTINUE?                                                        
FOR PUBLICLY TRADED STOCKS VOLATILITY MAY BE ASCERTAINED                        
BY EXAMINING THE LITERATURE. JUST LOOK FOR BETA.                                
FOR OTHER INVESTMENTS ASCERTAINING VOLATILITY IS SOMEWHAT                       
MORE DIFFICULT.                                                                 
                                                                                
PRESS ENTER TO BEGIN?                                                           
ENTER TREASURY INTEREST RATE(%) ? 2.75                                          
ENTER EXPECTED MARKET RETURN(%) ? 5.25                                          
ENTER VOLATILITY FOR INVESTMENT ? 0.10                                          
THE EXPECTED RETURN ON THIS INVESTMENT IS  3 %                                  
                                                                                
                                                                                
PRESS ENTER FOR MORE COMPUTATIONS? -1                                           
