What is the difference between between beta and standard deviatio

Q: . How long will it take an investment earning 18% compounded monthly to double in value? a. 3.64…

A: Lets assume initial investment (PV) = 1 Therefore future value (FV) = 2 Monthly interest rate (r) =…

Q: What is the future value of a $900 annuity payment over five years if interest rates are 8 percent?…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: same? Lütfen birini seçin: O a. cannot be decided O b. Project B O c. Project A O d. Neither Project…

A: Net present value is the difference between the present value of cash flow and initial investment of…

Q: What is the annualized investment rate% on a Treasury bill that you purchase for $8000 that will…

A: T-bills refers to a debt securities or government bonds issued by the central bank on behalf of the…

Q: Could you help me with calculation of cost of debt which is 8,13%, i can see that was made excel…

A: Cost of Debt: It represents the cost of raising debt capital for the issuer. The issuer pays the…

Q: 12)) The price of $6050 face value commercial paper is $5900. If the annualized investment rate is…

A: Commercial paper is a form of uninsured debt security issued by firms to support payrolls, accounts…

Q: Suppose you are a Chief Financial Officer of Burger Joint In. Although burger joint Inc. we'll need…

A: Calculation are done in excel so there is no intermediate rounding when answers were calculated…

Q: A 11-year, semiannual coupon bond sells for $938.52. The bond has a par value of $1,000 and a yield…

A: Price of the bond (P0) = $938.52 Maturity value of the bond (Z) = $1000 Semiannual yield to maturity…

Q: What is the CAPM? What does it tell you?

A: Capital asset pricing model (CAPM) is a model or method which is used by the company to define the…

Q: What is idiosyncratic risk? How does it differ from market risk?

A: Idiosyncratic risk or unsystematic risk or specific risk is that risk which belongs to specific…

Q: Joey Espinoza has $1,000 in cash, he deposits the total amount in Legion Banc. Legion Banc lends the…

A: The banks have to deposit certain amount of money with central bank depending on the deposit made in…

Q: escribe the role of a financial risk manager, how one would differentiate between pure and…

A: Financial risk management: It is a process of identifying potential  risk of a company  with respect…

Q: Revenue from the sale of ergonomic hand tools was P300,000 in years 1 through 4 and P465,000 in…

A: Sales; Year 1-4 = P300,000 Year 5-9 = P465,000   Interest rate = 0.10 Period = 9 years Present value…

Q: 12. Suppose the current exchange rate is $1.84/£​, the interest rate in the United States is…

A: ​ Black-Scholes formula It is  a mathematical model for the dynamics of a financial market  that…

Q: Tax evasion and tax avoidance costs the UK government £34 billion a year.” In the light of the above…

A: Tax evasion:  One sign of tax evasion is the amount of unreported income, which is the difference…

Q: Suppose that the CAPM holds and that BP’s stock has a beta of 2. the required rate of return on BP…

A: Stocks refer to the concept which denotes the security that represents the holder's ownership in the…

Q: 3.An industrial firm is considering purchasing several programmable controllers and automating the…

A: This is a problem involving present worth and annual worth. In this problem, we have to calculate…

Q: Larry wants to make a decision on a six- year amortized loan for him to buy a new car. The value of…

A: It will be enough if the present value of monthly payment of $700 is equal to or more than the car…

Q: [S1] A proxy fight involves having shareholders looking for board members that will allow an…

A: A proxy fight is an activity through which certain activist shareholders try to tempt other…

Q: n March 2022, ABC Co. is considering the issuance of $100 million 10-year bonds rated AAA. The issue…

A: Rates of AAA bonds are related directly to the treasury bond future contracts so can use for hedging…

Q: Company A's historical returns for the past three years are 6 percent, 15 percent, and 15 percent.…

A: The capital asset pricing model is a financial concept that is widely used. In this model, the…

Q: 1. An asset that is purchased with the expectation that it will produ or appreciate Tuture. Bond sit…

A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…

Q: -260000 120000 140000 -350000 100000 130000 200000 50000 3 100000 4 50000 The firm has an…

A: Net present value is the present value of cash flow to the initial investment and if it is positive…

Q: Calculate the expected return, variance, and standard deviation for a portfolio of four equally…

A: The expected return of the portfolio is the return that an investor gets based on the weightage…

Q: Which combination of investment policy and financing policy related to working capital provides the…

A: A relaxed current asset investment policy is one under which relatively large amounts of current…

Q: Mr. Cruz borrowed P100,000 from BPI at a stated rate of 6% payable over a period of one-year. What…

A: Loan amount = P100,000 Interest rate = 0.06 Interest amount = P6,000 (i.e. P100,000 * 0.06)…

Q: You also know that the outstanding debt has been constant over the past few years. 2021 2022 Assets…

A: The method of evaluating a company's liquidity and profitability using the financial statement of…

Q: financial impact of lily taking out this payday loan? how do borrowers get trapped in an inescapable…

A: Payday loans are non-secured ash advances for small sums of money with extremely high-interest rates…

Q: A 25-year coupon bond pays an annual coupon of 5 and has a face value of 100. If the current price…

A: Annual Interest = 5% FV = Face Value of the Bond = 100 Price = Current Market Price = 100 Maturity =…

Q: 4. If at the beginning of the 6th year the nominal rate drops to 12% compounded quarterly, what is…

A: Mortgage amortization refers to a schedule which is prepared to shows the periodic loan payments,…

Q: Consider the following cash flows. The interest rate is 8%. What is the total wealth after 2 years…

A: Present value of a future amount With interest rate or discount rate (r), period (n) and future…

Q: Identify the type of merger in the following case: ABC manufactures furniture. It acquired a…

A: Merger means acquistion of one business by another. There are two parties involved in merger…

Q: A certain college graduate borrows 7406 dollars to buy a car. The lender charges interest at an…

A: Continuously compounded interest rate refers to the interest rate that is calculated on the…

Q: Who first developed portfolio theory?   Multiple Choice:   A) Richard Brealey B) Franco…

A: Answer -    An economist named Harry Markowitz, a Nobel Prize winner is the father of modern…

Q: A solid waste disposal company borrowed money at 10% pe and other equipment needed at the…

A: The principal amount would the present value of single payment done after 2 years considering the…

Q: ooking at a $523,000 home. To avoid private mortgage insurance (PMI), she put 20% down and the…

A: LTV that is the loan to value ratio shows that how much can give the loan against property and is…

Q: Given that Operating Cash Flow is $300 Net Capital Spending $125 Change in Net Working Capital $ 75

A: Cash flow from assets can be get after deduction of capital expenditure and change in working…

Q: ABC has a return of 400,000 which is 2% more than its required return. If the cost of capital is…

A: Shareholder Equity:  It can be described as the residual claim of the owners of the company after…

Q: For each of the following monetary policy tools: A. The BSP buys securities in the open market. B.…

A: Monetary policy is the policy that is related to money and this policy is set by the central bank to…

Q: 6. Find the amount at the end of 15 years if P 55 000 is invested at an interest rate of 5%…

A: Final Amount (Principal +Interest) = P (1+r/n)nt Where P = Principal Amount r = rate of interest n =…

Q: Use the following table:                      Present Value of an Annuity of 1 Period…

A: Concept. IRR ( internal rate of return) Internal rate of return is method of calculating investments…

Q: Mr Price, has no debt outstanding and a total market value of R150,000. Earnings before interest and…

A: Here, To Find: % Change in EPS when the economy expands =?

Q: If the Canadian dollar to U.S. dollar exchange rate is 1.30 and the British pound to U.S. dollar…

A: 1 US dollar = 1.30 Canadian dollar 1 US dollar = 0.77 British pound We need to find Canadian dollar…

Q: Calculate the capitalized cost of a project with a P3,000,000 beginning an extra P850,000 investment…

A: Capitalized cost would be present value of all cost that are going to occur in future course of time…

Q: A company has a choice of three investment schemes. Option I gives a sure $25,000 return on…

A: Option I: Expected Return = $25,000 As this return is guaranteed. Option II: Expected Return =…

Q: al-currency bond makes coupon interest payments in one currency and the principal repayment at…

A: Dual currency bond as name suggest it work in two currencies due to which holder of bond is exposed…

Q: Discuss different forms of risk that any multinational enterprise might be exposed to the recent…

A: Geopolitics is a discipline of international politics that examines political power in relation to…

Q: Consider the following cash flows. The interest rate is 10%. What is the total wealth after 2 years…

A: It is given that: Year  Cash flow  1 150 2 120 3 100 4 200       And the Expected…

Q: BCD Company offer its investors option contracts to buy their shares at a price of P50. Currently,…

A: Given, The spot price is P60 Risk free rate is 8.25%

Q: A stock is expected to pay dividends of $1.45 per share in Year 1 and $1.68 per share in Year 2.…

A: current value of the stock can be calculated using multi stage dividend discount method Share value…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.