Discount P 9,000 for 9 months at a discount rate of 8%.

Q: what is its equity beta?

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A: Callable bond A callable bond is a bond that can be called and retired at any time within the call…

Q: 2) are paid the bank rate plus 50 basis points

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A: Perpetuity means an infinite number of equal payments for an indefinite period. It is a type of…

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A:

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Q: $1.20

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Q: How emergence or evolution of entrepreneurship took plate? Please explain in Detail.

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A: Here,

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Q: current price

A: Current price refers to the indication of the price at the present moment in time which is said to…

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A: A genuine option provides a company's management with the right, but not the obligation, to pursue…

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Q: $104.61

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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.