Capital Budgeting & Portfolio Management

What is the primary goal of capital budgeting?

Which of the following methods is used to evaluate projects with different lives?

$$\beta = \frac{Cov(R_i, R_m)}{\sigma^2_m}$$ represents which concept in portfolio management?

Explain the concept of portfolio diversification and its importance in portfolio management.

Discuss the role of the Capital Asset Pricing Model (CAPM) in portfolio management.

What are the key differences between the Net Present Value (NPV) and Internal Rate of Return (IRR) methods of evaluating investment projects?