Using the data generated in the graph, show what the information looks like in a spreadsheet. a) Plot the Security Market Line (SML) b) Superimpose the CAPM’s required return on the SML c) Indicate which investments will plot on, above, and below the SML? d) If an investment’s expected return (mean return) does not plot on the SML, what does it show? Identify undervalued/overvalued investments from the graph.
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- What is the IRR and NPV of the below CFs if discount rate is 12%. (Calculate in excel equation. $350, 000, $56, 000, $39,000, $298,000, $82, 000, $190, 765, S3, 000) $1,000)Match the following measurements with the terms below: Question 15 options: 12345 cash conversion efficiency ratio 12345 economic ordering quantity 12345 credit terms 12345 net working capital 12345 days of working capital 1. 5.1% 2. 47.2 days 3. 1/10, n/30 4. $200,000 5. 700 unitsThe following data are avaibble from the reccords of a compary: Sales: Rs 60,000 V.C:Rs 30,000 Fixed Cost: Rs 15, 000 Calculate: 1) P/VRatio BEP(Rs) and M/S at this lend. 2) The effect of10%increase in sales price 3) The effect of10%decrease in sales price
- In the Economic Order Quantity (EOQ) Theory, if CO £20, D 24,000, EOQ 400, calculate the annual holding cost. A £6 B £12 C £18 D £36A company is thinking of investing in one of two potential new products for sale. The projections are as follows: Year Revenue/cost £ (Product A) Revenue/cost £ (Product B)0 (150,000) outlay (150,000) outlay 1 24,000 12,0002 24,000 25,3333 44,000 52,0004 84,000 63,333 Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%. Which product should be chosen and why?Assume the following: Spot USDBRL = 5.0500 1YR USD Money Market Rates = 1.50% 1YR BRL Money Market Rates = 9.00% What is the 1YR USDBRL forward rate? (Recall that Money Market Rates are quoted as annualized rates)
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