A beta coefficient reflects the response of security return

Assignment Help Financial Management
Reference no: EM131878538

1. If a cake dealer offers to sell you an oven and finance it for 60 months with monthly payments of $429 and the market rate for loans is 6.6%, how much is the cake dealer charging you for the oven? (Round to the nearest dollar)

2. Suppose a single man has an annual income of $84,000. Interest rates are at 4% for a 30 year LPM (factor = .0047742), lenders require a down payment of 5%, PMI costs .78% of the OLB (divide by 12 for monthly payment) and insurance and taxes amount to 3.2% of the home value annually. He pays $1,550 per month to cover other debt obligations.  Using a back ratio (DTI ratio) of 43%, he can afford a home priced at:

A. $249,600

B. $210,278

C. $185,936

D. $179,809

E. $129,171

2. A beta coefficient reflects the response of a security’s return to:

an unsystematic risk.

idiosyncratic risk.

a systematic risk.

the risk-free rate.

the market rate of return.

Reference no: EM131878538

Questions Cloud

Maturity risk premium on the two year treasury security : Calculate the maturity risk premium on the 2-year Treasury security.
What is your expected rate of return on this stock : There is a 17 percent probability of a boom, a 74 percent chance of a normal economy. What is your expected rate of return on this stock?
Bond is premium bond with coupon : Bond P is a premium bond with a coupon of 9.8 percent , a YTM of 8.55 percent, and 15 years to maturity.
What is the macaulay duration of the bond : what is the Macaulay duration of the bond? What is the modified duration?
A beta coefficient reflects the response of security return : A beta coefficient reflects the response of a security’s return to:
Based solely on the results of calculating financial ratios : Why or why not do you consider it sound business practice to make financial decisions based solely on the results of calculating financial ratios, for instance,
What is the beta of this stock : The common stock of Jensen Shipping has an expected return of 11.60 percent. What is the beta of this stock?
What are the yield to maturity and yield to call on bond : What are the yield to maturity and yield to call on this bond? (Do not round intermediate calculations.
Company is considering expansion into related fields : Your employer, a mid-sized human resources management company, is considering expansion into related fields,

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd