Author Question: The appropriate measure for risk according to the capital asset pricing model is A) the standard ... (Read 72 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?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

For a complete list of videos, visit our video library