For numbers 4 to 5: Maria wants to have ₱750,000.00 at the end of 4 years for her graduation expenses. She plans to deposit a certain amount at the end of each month to achieve this. Her bank pays 15% compounded monthly. 4. Which of the following refers to the monthly rate? A. 1.25% B. 15% C. 12% D. 0.0125% 5. Which of the following refers to the total number of deposits? A. 12 B. 60 C. 48 D. 5 6. Find the actual time from February 1, 2017 to July 23, 2017. A. 170 days B. 171 days C. 172 days D. 173 days
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.
For numbers 4 to 5: Maria wants to have ₱750,000.00 at the end of 4 years for her graduation expenses. She plans to deposit a certain amount at the end of each month to achieve this. Her bank pays 15% compounded monthly.
4. Which of the following refers to the monthly rate?
A. 1.25%
B. 15%
C. 12%
D. 0.0125%
5. Which of the following refers to the total number of deposits?
A. 12
B. 60
C. 48
D. 5
6. Find the actual time from February 1, 2017 to July 23, 2017.
A. 170 days
B. 171 days
C. 172 days
D. 173 days
7. Eleven months after borrowing money, Dorah pays an interest of ₱2,800. How much did she borrow if the simple interest rate was 11 1/3 % ?
A ₱290.89.
B. ₱291.86
C. ₱26,951.87
D. ₱26,862.12
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