SITUATION 6: A car has a window price of 3.2M, if a man would be willing to purchase the car by paying the least amount of P150 00 0 down payment, he avails a 10% discount and could pay the remainder installments with nominal interest of 5%. If Allyson wanted the car, and after discussions with her husband end up paying for the initial 6,700 PROBL These an night ref sa lifetime of of an amount via monthly b. of 3.2M. 4 years using tion? 7.655M PROBLI payment: 41. How much amortization will they pay if it they opt to pay for 3 years? a. P81,820.5 C. P92,625.5 P8.125M A princip account annually. after seve 4 years using b. P100,235.5 d. P95,675.5 ion? 7.938M a. 1 6.825M 42. How much amortization will they pay if it C.1 they opt to pay for 5 years? PROBL b. 255,985.5 d. P61,125.5 4 years using a. P62,953.5 c. P51,518.5 Find the was dep withdra 4.571M 5.893M 43. How much amortization will they pay if it they opt to pay for 2 years? a. R119,768.9 bn c. P122,181.9 a. 4 years using b. P99,825.9 d. P98,253.9 1.935M PROBL 8.447M 44. How much amortization will they pay if it they opt to pay for 10 years? A a. P38,965.9 n b. P35,925.9 c. P28,955.9 2 %6 1V how long EV a. if it is invested 00 d. P25,987.9 c.i t compounded PROBL 45. How much amortization will they pay if it they opt to pay for 5 years but made an initial payment of a total of 1 million pesos? b. P36,911.9 d. P35,477.9 9.36 What ra 9.43 annually a, P26,911.9 c. P31,953.6 unodwom a.9 double if it is C. 9 ys 9% interest PROBLEM 46: lo to

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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.