What is the total amount of money to be paid back at the end of 5 years for a loan of 160 000 liras drawn from the bank for housing needs with a compound interest of 15% per year? A) 322 158 B) 323 700 C) 321 817 D) 325 521 E) 324 003
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.
32 - What is the total amount of money to be paid back at the end of 5 years for a loan of 160 000 liras drawn from the bank for housing needs with a
A) 322 158
B) 323 700
C) 321 817
D) 325 521
E) 324 003
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
