You borrow $5000 now and agree to pay this whole amount back in three payments Poyment 1. SX in 2 months Poyment 2 $2X in 6 months Payment 3. $2X in 10 months a) Determine X Gyearly) interest is at 11.0% compounded monthly b) Determine X if yearly) interest is at 11.0% compounded continuously Note: Do not use your calculator for this problem; type in an expression which represents the exact answer for parts a) and b). You must convert interest rate to the exact values, for example 10.1%-

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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.