Author Question: The appropriate measure for risk according to the capital asset pricing model is A) the standard ... (Read 73 times)

ishan

  • Hero Member
  • *****
  • Posts: 546
The appropriate measure for risk according to the capital asset pricing model is
 
  A) the standard deviation of a firm's stock returns.
  B) the standard deviation of a firm's cash flows.
  C) alpha.
  D) beta.

Question 2

Given a discount rate of 0, which of the following has the greatest present value? ONE, a series of 10 equal annual end-of-the cash flows of 100 each, TWO, just like ONE except the first 5 cash flows are only 50 but the last 5 cash flows are 150
 
  , or THREE, just like ONE except the 10 100 cash flows are at the beginning of the period.
  A) ONE
  B) TWO
  C) THREE
  D) The choices all have equal present values.


kxciann

  • Sr. Member
  • ****
  • Posts: 356
Answer to Question 1

D

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

Did you know?

For pediatric patients, intravenous fluids are the most commonly cited products involved in medication errors that are reported to the USP.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

Cucumber slices relieve headaches by tightening blood vessels, reducing blood flow to the area, and relieving pressure.

Did you know?

The FDA recognizes 118 routes of administration.

For a complete list of videos, visit our video library