Capital asset pricing model and discount


1. Capital Asset Pricing Model :?

A model which describes the price of an asset based on its total risk.

A model linking price and required returns.

A model based on the proposition that any stock s required rate of return is equal to the risk free rate of return plus a risk premium that reflects only the risk remaining after diversification.

A model that relates a stock's required return to its price and dividend payments.

None of the above.

2. Discount Bond :?

A bond for which the current interest rate is above the coupon rate.

The rate of return earned on a bond held until maturity.

A bond for which the current interest rate is below the coupon rate.

A bond for which the current interest rate is equal to the coupon rate.

The date when a bond was issued.

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Financial Management: Capital asset pricing model and discount
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