Exercise 6 As new analyst of an investment bank, you are asked to calculate the required...
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Exercise 6 As new analyst of an investment bank, you are asked to calculate the required rate of returns or CAPM (capital asset pricing model) of the following US companies. The T-Bill (US Government short-term bond) has a 1,5% rate and the risk premium is 5%. Rank the companies in order of preference of investment in risk averse environement and explain why. Tesla Apple Aplhabet Microsoft 839,82 164,56 2659,24 296,74 1,41 1,19 1,07 1,01 Exercise 6 As new analyst of an investment bank, you are asked to calculate the required rate of returns or CAPM (capital asset pricing model) of the following US companies. The T-Bill (US Government short-term bond) has a 1,5% rate and the risk premium is 5%. Rank the companies in order of preference of investment in risk averse environement and explain why. Tesla Apple Aplhabet Microsoft 839,82 164,56 2659,24 296,74 1,41 1,19 1,07 1,01
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The CAPM or Capital Asset Pricing Model explains the relationship between risk and return of t... View the full answer
Related Book For
Accounting
ISBN: 978-1337899451
27th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date:
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