What is the market beta of P?

Q: What is an acceptable current ratio?

A: Definition: Ratio analysis: It is the financial analysis tool for measuring the profitability,…

Q: What is the profitability index? When is it used?

A: Capital investment analysis: Capital investment analysis is the process by which management plans,…

Q: Suppose Dean has $500 and there are two companies he could invest X dollars in: Dog Gone Salon,…

A: Financial risk is defined as the risk, which have the different forms of risk that are associated…

Q: Define beta risk

A: The portfolio beta is a measure of the portfolio’s volatility. It measures how the stock moves in…

Q: What are the assumptions of efficient market hypothesis? Discuss.

A: The efficient market hypothesis (EMH) is a hypothesis theory which states that share prices reflect…

Q: What does the volatility value represents?

A: Volatility for a given product or market index is a factual proportion of the scattering of profits.…

Q: What are the components of the risk-free rate?

A: risk free asset: it is the asset which does not carry any risk.

Q: What is the marginal rate of return? How is it calculated?

A: Answer: Marginal rate of return can be defined as the return obtained or received by means of…

Q: What is a marketorder?

A: Market order It is a request made by a financial specialist generally through an intermediate person…

Q: What is the expected return? What is the variance? What is the standard deviation?

A: State Probability Returns       Boom 0.25 0.15 Normal 0.50 0.08 Slow down 0.15 0.04…

Q: What does it mean for markets to be efficient? What are the differences in the degree of efficiency,…

A: The markets are considered to be efficient if the information related to various aspects that create…

Q: Write Example for preference dividend?

A: Formula: Preference dividend = Preference shares x Preferred dividend rate

Q: What is the d market book ratio?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: What stock valuation models are available?

A: The stock valuation models as follows: Absolute valuation: This method mostly emphases on finding…

Q: Define spot markets

A: A place where numerous sellers, as well as buyers, come together for exchanging services and…

Q: Present and Explain the theories of the Yield Curve?

A: The yield curve is a curve that shows the relationship between the interest rates and the different…

Q: Mathematically, what does the beta value represents the _____________ of the market line

A: Beta (β) represents the slope of the security market line (SML).The security market line is a…

Q: What is market multiple method?

A: The market multiple methods is a hypothesis of valuation, in view of the reason that comparative…

Q: what is base stock methods?

A: The base stock method is a valuation technique for the inventory asset, where the minimum amount of…

Q: What does ROI measure?

A: Return on Investment: Return on Investment is a profitability measure which determines a company's…

Q: What is the y risk-free investment?

A: Risk-free rate of return is the rate of return that an investor expects from an investment in any…

Q: How do you calculate a weighted beta?

A: In portfolio there are number of stock present in portfolio. We have to calculate weight of each…

Q: What is the market model? How is it different from the SML forthe CAPM?

A: The market model is utilized to show how forces of supply and demand powers cooperate to decide…

Q: Define the term current market value.

A: The current market value (CMV) gives parties interested in making a transaction the approximate…

Q: Arbitrage is the idea that one can (select the best answer): Group of answer choices   Buy and…

A: The objective of the question is to understand the concept of arbitrage in finance and select the…

Q: What is Market Value Added (MVA)?

A: The market value added is the difference of the current value of the company and the equity capital…

Q: What is market value ratios?

A: Introduction: Market value ratios help to assess the economic position of publicly dealt…

Q: what does Market's Risk premium measure

A: Market's Risk premium is an important term used in the capital asset pricing model equation (CAPM)…

Q: Cost method, Market method

A: There are different methods of pricing a product but the most common are on the basis of cost and…