A check for ₱6,912 was used to pay off a loan which was made at a rate of 9.6% simple interest for 6 months. How much money was borrowed originally? a. 650 b. 4322.34 c. 6485.02 d. 6500
Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
1. A check for ₱6,912 was used to pay off a loan which was made at a rate of 9.6% simple interest for 6 months. How much money was borrowed originally?
a. 650
b. 4322.34
c. 6485.02
d. 6500
2. A loan of ₱2800 was paid off at the end of 120 days with a check of ₱2917.60. what annual rate of investment was used? (use 360 days a year).
a. 4.2%
b. 1.26%
c. 3.5%
d. 6%
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