To measure risk-the capital asset pricing model uses

Assignment Help Business Economics
Reference no: EM13978969

To measure risk, the capital asset pricing model uses

a) beta

b) an assets standard deviation

c) the volatility of an assets cash flows

d) the term during which the asset is held

Reference no: EM13978969

Questions Cloud

Cash flows per share and cost of capital : An analyst knows with certainty that Skipper Inc. will exist for two years and have the following cash flows per share: What is the stock price of Skipper Inc., if the opportunity cost of capital is 8 percent?
If a nation exports few goods then it imports : If a nation exports few goods, then it imports, it
Multitiered payment systems-multiple modes of access : Health reform is mired in the morass of multitiered payment systems and multiple modes of access, limited by the ability to seek and to pay. Increasingly, patients are interacting with multiple entities within the system, causing more and more con..
Create a conceptual framework paper : Create a Conceptual framework paper on Obesity and Weight management amongst Professional African American women, ONE AND A HALF PAGES. Please cite everything as well.
To measure risk-the capital asset pricing model uses : To measure risk, the capital asset pricing model uses
What is the standard deviation of this investment : Your investment has a 5% chance of earning a 48% return, a 25% chance of earning a 17% rate of return, a 35% chance of earning an 9% rate of return, a 25% chance of losing 14%,and a 10% chance of losing 33%. What is the standard deviation of this inv..
Internal and external influencers in purchasing decisions : What are the most important internal and external influencers in your purchasing decisions
About investing in residential income producing property : Elena Martinez is thinking about investing in some residential income producing property that she can purchase for $200,000. Elena can either pay cash for the full amount of the property or put up $50,000 of her own money and borrow the remaining $15..
What are the values of the real money supply : What are the values of the real money supply and the current price level?

Reviews

Write a Review

Business Economics Questions & Answers

  Determine the long run equilibrium output

Assume to the firms act independently as in the Cournot model. Determine the long run equilibrium output also selling price for each firm.

  When quantity supplied increases at every possible price

When quantity supplied increases at every possible price, we know that the supply curve has

  Qa central bank finds itself in the following situation the

q.a central bank finds itself in the following situation the national economy has been in a slump for several years but

  Explain the effect of the following events on interest rate

Explain the effect of the following events on the interest rate in the loanable funds market. Demonstrate you answer graphically.

  What nominal rate should they charge borrowers

Recently, the average rate paid by banks on savings accounts was 0.45%. However, at the same time, inflation was around 1.50% what was the average saver’s real rate of interest on his/her earnings? (b) Banks expect that the rate of inflation in the c..

  Corresponding marginal cost

Suppose that an increase in crime (O) also results in a per unit amount of social damage equal to d(d>0).

  Savings account by depositing

John opens a savings account by depositing $5000. The account pays 2% simple interest. After 3 years, John makes another deposit, this time for $6000. What will be the amount in the account when John withdraws the money 7 years after the first deposi..

  Elucidate what is the lerner index for this industry

Suppose the demand curve for a monopolist is q=500-p, and the marginal revenue function is mr=500-2q. The monopolist has a constant marginal and average total cost of $50 per unit. Elucidate what is the lerner index for this industry.

  What are marginal cost and average total cost

A cubic total cost function is expressed as TC=a+bq+cq^2+dq^3 if a=0 b=400 c=-50 and d=5 then. What are MC (Marginal Cost) and ATC (Average Total Cost) respectively equal to? At what output levels are MC and ATC respectively minimized?

  Linear relationship between income and quantity demanded

Your income rises from $1,000 a year to $10,000 and your purchases of beer increase from 10 to 20. Assume a linear relationship between income and quantity demanded. What number below most closely approximates your income elasticity at income equals ..

  Calculate consumer surplus and LWEs profit with that price

There are 10 households in Lake Wobegon, Minnesota, each with a demand for electricity of Q = 60 – P. Lake Wobegon Electric’s (LWE) cost of producing electricity is. If the regulators of LWE want to make sure that there is no deadweight loss in this ..

  In competitive market the market demand

In competitive market the market demand is Q=60-6P and supply =4P

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