Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The capital asset pricing model, or CAPM, is used to price an individual security or portfolio. The general idea behind CAPM is that investors should be compensated in two ways, for the time value of their money and risk incurred. The model helps investors calculate risks and what type of return they should expect on their investment. The time money value is represented by the risk-free rate, usually a 10-year government bond yield, and compensates the investors for placing money in an investment over a period of time. That is added to the other half of the formula which represents risk. It calculates the amount of compensation the investor needs for taking on additional risk. This is done by taking a Beta, which measures a stock's volatility, and multiplies by its premium. The premium is calculated by subtracting the risk-free rate of return from the expected return of the market. For example, the expected return of a stock can be figured out in the following way using a model. If the risk-free rate is 3% the Beta or risk measure of the stock is 3 and the expected market return over the period is 11%. The stock is expected to return 27%. In short, if the expected return does not make the risk worth it, the investment should not be made.
Respond to the following questions:
You are the chief financial officer (CFO) of a multi-physician clinic. Do you see weaknesses or strengths in the capital asset pricing model (CAPM)? Explain your response and support it with examples. Include a consideration of the small market line (SML).
Your chief executive officer (CEO) asks you to decide between debt and equity financing. Explain which the best option is. Discuss the factors that influence your decision.
change management models for organizationsorganizations like all cultures must continue to evolve or they stagnate and
Choose a specific incident from your life where you have used the four primary management functions of Planning, Organising, Leadership and Controlling.
What are the two greatest professional strengths someone needs for him to do a management job?
You've just taken a new job in human resources management and the organization's president gave you this high priority task: Give us a plan that can make performance reviews motivating to the recipients and their bosses alike.
Analyze the international entry modes and international strategies of a multinational enterprise
Illustrate how you would analyze at least three problems and formulate solutions in health care using strategic management principles.
What is agham and mathematics and how to identify it?
From the first e-Activity, determine the financial measure you believe to be the most important and the one that is least important to potential investors. Support your answer. Compare and contrast the two financial measures you selected according to..
Explain and identify how marketers or the producers could reach out to the non-customer and fully convert them into customers without losing their current customers
Zetty Eunos McWilson has always wanted to become an air stewardess. She believes that she is born to be an air stewardess. She is tall and athletic.
Teams can exist for a myriad of reasons; however, the development process will always be relatively the same. Understanding each of the stages is important
Discuss how to use the lessons learned in the BBA program to be more productive in a future career. Provide specific examples to support your response.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd