Capital asset pricing model and discount bond

Assignment Help Financial Management
Reference no: EM131897545

1. Capital Asset Pricing Model :?

A model which describes the price of an asset based on its total risk.

A model linking price and required returns.

A model based on the proposition that any stock s required rate of return is equal to the risk free rate of return plus a risk premium that reflects only the risk remaining after diversification.

A model that relates a stock's required return to its price and dividend payments.

None of the above.

2. Discount Bond :?

A bond for which the current interest rate is above the coupon rate.

The rate of return earned on a bond held until maturity.

A bond for which the current interest rate is below the coupon rate.

A bond for which the current interest rate is equal to the coupon rate.

The date when a bond was issued.

Reference no: EM131897545

Questions Cloud

Amount of metal needed is as small as possible : Find the radius x of the base and the height h, for which the amount of metal needed is as small as possible.
Find present value if the annual effective interest rate : Find the present value if the annual effective interest rate is i=4%.
What is Benedict definition of normality and abnormality : What is Benedict's definition of normality and abnormality? Give an example of how she proves the are socially dependent. How does this relate to Gallagher's.
What is the credit spread on b-rated corporate bonds : What is the credit spread on AAA-rated corporate bonds? What is the credit spread on B-rated corporate bonds?
Capital asset pricing model and discount bond : Capital Asset Pricing Model and Discount Bond
Justify the characteristics of human resource manager : Justify the characteristics of human resource manager that can positively influence staff Building a Multicultural Workforceand Cultural Competence Self
Write an essay that explore archaeological contribution : write an essay that explores the archaeological contributions of William Foxwell Albright renowned biblical archaeologists.
How does the bank define their market : How does the bank utilize technology to meet local needs for products and services, and why was that technology selected?
Bonds represent an ownership contract : Bonds represent an ownership contract. Stocks are contracts with required return. A steep yield-curve indicates that investors anticipate rapid economic growth.

Reviews

Write a Review

Financial Management Questions & Answers

  The principal repayment the first year is

A fully amortized bond has a maturity of 5 years, The principal repayment the first year is:

  What was the total coupon payment

Then for the original total par value of 1,000,000, what was the total coupon payment on September 15, 2016?

  What is the value of its credit sales

Mervyn's Fine Fashions has an average collection period of 50 days. The accounts receivable balance is $95,000. What is the value of its credit sales?

  What is the present value of security

What is the present value of a security that will pay $31,000 in 20 years if securities of equal risk pay 11% annually?

  Retirement account-make monthly contributions

He plans to open a retirement account and make monthly contributions from his paycheck.

  Weight of each stock in the minimum variance portfolio

Consider two stocks, Stock D, with an expected return of 14 percent and a standard deviation of 26 percent, and Stock I, an international company, with an expected return of 7 percent and a standard deviation of 17 percent. The correlation between th..

  Numeric response-accounts without client consent

Former Wells Fargo CEO John Stumpf testified before the Senate Finance Committee regarding the opening of over 2 million accounts without client consent.

  Considering the problems with the use of ROE

Considering the problems with the use of ROE, do you believe ROE remains a valuable financial tool?

  Calculate the current earnings per share

Calculate the firms EOQ for the item of inventory and what is the firms total cost based upon the EOQ calculated above - Calculate the current earnings per share

  Convert accounts of its non-us subsidiaries into us dollars

Describe (Summarize) both companies methods used to convert the accounts of its non-U.S. Subsidiaries into U.S. dollars.

  What is lower bound for price of four-month call option

What is a lower bound for the price of a four-month call option on a non-dividend-paying stock

  Change in price bond will experience in dollars

You believe that in one year, the yield to maturity will be 7.6 percent. What is the change in price the bond will experience in dollars?

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