Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Finance questions.

Options
  • 05-03-2017 4:02pm
    #1
    Solomon Pleasant
    Registered Users Posts: 540 ✭✭✭


    Hi guys,

    I have a finance exam in a few days and I'm struggling to find the answers to a few questions.

    Q1: Which of the following underpins the rationale behind the CAPM method of estimating the cost of equity;

    A) Only unique risk is rewarded
    B) Only market risk is rewarded as unique risk can be diversified away
    C) Only unsystematic risk is rewarded as it cannot be diversified away
    D) only diversifiable risk is rewarded as it affects total risk

    Q2. Which of the following best describes how to calculate the risk of an asset?

    A) The sum of the squared deviations from the mean
    B) The square root of the summed deviations from the mean
    C) The average of the squared deviations from the mean
    D) The square root of the average squared deviations from the mean

    If anyone knows the answer to either I'd be grateful for the help. Thank you!


Comments

Advertisement