A stock has a beta of 4.6. Knowing that the rish O 46% 49% O 32.2% O None of the listed items is correct O 23.8%

Q: 4) An n-year loan involves payments of $800 at the end of each month. The interest rate is 12% conve...

A: Here, Monthly Payment is $800 Interest Rate is 12% Compounding Period is Monthly i.e. 12 Interest on...

Q: Here is Ahmad's credit card statement for the month of November. Transaction Date Transaction amount...

A: Date Transaction Transaction Amount 01 November 2022 Beginning balance  $               1,500.03 ...

Q: A bank uses a certain form at a uniform rate of 60 pads per week during each of the 52 weeks per Thi...

A: Since you have posted a multiple question therefore we will be solving first question only. However,...

Q: Derrick recently graduated. He owes $17,525 in student loans with APR of 4.6% compounded monthly. He...

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts a...

Q: On January 1, 2021, Canada Corp. purchased 4-year bonds with a face value of P7,300,000 and a stated...

A: Bonds that are held till maturity are recorded at cost including associated cost. Any discount or pr...

Q: - Consider a firm that has EPS of $5 at the end of the first year, a dividend-payout ratio of 30%, a...

A: Discount rate is 16% Return on retained earning is 20% EPS is $5 Dividend Payout ratio is 30%   To F...

Q: #1 Matthew makes a series of payments at the beginning of each year for 20 years. The first payment ...

A: Present value of a future amount With interest rate (i), period (t) and future value (FV), the prese...

Q: Student A wishes to invest in cryptocurrency, how long will it take to double his investment when he...

A:  Future Value refers to the value of the current asset or investment or of cash flows at a specified...

Q: Huang Industries is considering a proposed project whose estimated NPV is $12 million. This estimate...

A: Given, The NPV of the project with different probabilities.

Q: If the accounts receivable turnover ratio is decreasing, what will be happening to the average colle...

A: Accounts receivable turnover ratio is an important activity ratio. This ratio shows how many times a...

Q: Calculate the bank's excess reserves if the legal reserve requirement is 25% based on the informatio...

A: Excess reserve refers to the fund (reserves) held by the bank or financial institutions and the amou...

Q: ABD Company's manufacturing overhead is 20% of its total conversion costs. If direct labor is PhP2,2...

A: Manufacturing overhead is referred as an indirect costs, which incurs at the time of production proc...

Q: Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of...

A: Net present value is the sum of the present value of net of cash outflows and inflows discounted at ...

Q: Identify methods for using and analysing working capital cycles

A: Working capital is the capital that a business needs and uses for the purpose of its day to day trad...

Q: who are still dependent. He received a $150,000 lump-sum retirement bonus and will receive $2,800 pe...

A: Prices increase each year by the rate of inflation and may grow to double from existing levels over ...

Q: Consider a fixed-payment security that pays P100 at the end of every year for the three years. If th...

A: Per year payment = P = P100 Number of payments = N = 3  Discount rate = I = 10%

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...

A: Cost of equity with constant growth rate in dividends forever With next year dividend (D1), current ...

Q: Neverland Company, a retailer, plans to sell 15,000 units of Product X during the month of August. I...

A: Sales = 15000 units Opening stock = 2500 units Closing units = 2000 units

Q: The 35-pound bag of dog food is regularly $37.99. It's on sale for $7.00 off. The 30-pound bag of do...

A: Data given: a) Regular price of 35 pound bag = $37.99 Off                                           ...

Q: Mr. Cruz agreed to settle a debt by making 12 quarterly payments of P 450 each. If he failed to make...

A: Quarterly payment (Q) = P 450 n = 12 payments r = 8% per annum = 2% per quarter Let X = Debt amount

Q: Compute for the Average Collection Period, use 360 days Final answers should be in 2 decimal places ...

A: In finance we often use the average collection period as one of the financial metrics.  This metric ...

Q: Netflix, Inc. has a beta of 3.61. If the market return is expected to be 13 percent and the risk-fre...

A: Market return is expected = 13% The risk-free rate = 3%

Q: certificates of deposit (CDs), earn interest compounded each day or even more frequently, such as ev...

A: Future value includes the amount deposited and the compound interest accumulated over the period of ...

Q: A U.K importer has future payables of DM 20,000,000 in one year. The importer must decide whether to...

A:   Deposit Rate Borrowing rate Sterling 8% 9% DM 6% 7% Spot rate  £ 0.74 =DM1     One y...

Q: Frank is a widower. He has a $15.3 million estate consisting primarily of undeveloped real estate an...

A: Life insurance policies are the ones that an individual buys to use the funds invested for his illne...

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...

A: Since you have posted a question with more than three sub-parts, we will solve the first three sub-p...

Q: Assume you have formed a portfolio of stocks by investing $200 in stock X, $300 in stock Y, and $500...

A: Beta factor can be defined as a measure of systematic risk of a security. That is, beta factor is a ...

Q: How do gross profits, operating income, and net income differ

A: In finance when making or analyzing an income statement we look into different types of income or pr...

Q: If Going Merry Inc. has a net income of P 200,000 and a net sales of P 5,050,000 during 2020; and a ...

A: Year 2020 2021 Net income 200000 225000 Net sales 5050000 7000000

Q: Optival’s stock is currently trading at $60 per share with a historical volatility of 20%. The risk-...

A: Given: Particulars   Spot price $60.00 Standard deviation 20% Risk free rate 4% Exercise ...

Q: Jinchuriki Inc.'s Financial Statement for years 2014-2015. Compute of the Average Sales Period/ Aver...

A: Ratios are calculated to determine the financial position of the company so that it would be easy to...

Q: Consider the following four debt securities, which are identical in every characteristic except as n...

A: Interest rate or YTM of a bond Yield to maturity (YTM) of a bond is the total anticipated return on ...

Q: Assume that a UK family visits Spain every summer. Last year, the hotel room where they stayed was p...

A: "Hi, Thanks for the Question. Since you asked multiple sub parts question, we will answer first thre...

Q: You can buy a carton of three 32-ounce bottles of shower cleaner on sale for $5.00. The 64-ounce "re...

A: Price of a carton of three 32-ounce bottles of shower cleaner = $ 5.00Price of 64-ounce "refill" siz...

Q: Answer the following probiems: 1. The buyer of a car pays P 169,000 cash and P 12,000 every month fo...

A: Solution:- Cash price means the amount payable in today’s terms. So, cash price = Down payment + Pre...

Q: What is your expected annual rate of return for this portfolio: stock A 1000 shares at $22/share exp...

A: Given, Stock A has 1000 shares at $22/share Stock B has 750 shares $11.50/share Bond $25000 Money ma...

Q: transfer technique for the partners t

A: A partnership is a type of business in which two or more people share their ownership for managing t...

Q: Ryan's and Troy's incomes are taxed at 25%. Ryan contributed $245 per month to an HSA. His earnings ...

A:   Ryan's Troy's Monthly Payment  $                                   245.00  $                    ...

Q: Ayush Power Limited has reported a net profit of 6 crore, 7.5 crore and 3 crore for the financial ye...

A: According to section 135 of the companies act 2013 every company whose: i) Net worth is Rs 500 cr. o...

Q: 5. You are the proud parent of a baby girl. Youlestimate that the cost of her college education 18 y...

A: The concept of the time value of money states that the same amount is worth more today than in the f...

Q: your required return is 7.32% how would adding ETFS with average annual returns that are expected to...

A: Meaning of ETFs( Exchange traded funds) This is a bunch of securities which is responsible for  the ...

Q: Problem 16-5 MM and Stock Value Foundation Corporation is comparing two different capital structures...

A: Capital structures includes the equity debt mix which is to be used by entities in financing theory ...

Q: If an investor buys shares in a no-load mutual fund for $33 and after eight years the shares appreci...

A: Mutual funds refer to one type of financial vehicle that pools money from many investors and invests...

Q: Suppose that P400 is deposited each year into a bank account that pays 8% interest annually. If 12 p...

A: Annual deposit (A) = P 400 n = 12 payments r = 8% Let the accumulated value = X

Q: the amount of the down payment?

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts fo...

Q: 1. If Ysabelle borrowed money from Nina with a simple interest rate of 12%, determine the present wo...

A: The simple interest is the interest without the compounding that means there is no interest on the i...

Q: You created and sold a futures contract 25 days ago. The contract at that time had a price of $60 an...

A: The rate of return of an investment with zero risk is known as the risk-free rate of return. It can ...

Q: ategies that a hospital must do to achieve financ

A: Financial health is necessary for any organization and this is very important to maintain and grow f...

Q: The present value of Rp100 million in three months is Rp97 million. Compute the simple interest rate...

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at t...

Q: What is meant by the concept of “potential savings (profits)”?

A: Profit is the total revenues less all costs and expenses. In other words, profit is the net earnings...

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.