Question
Which of the following best describes the role of the
Capital Asset Pricing Model (CAPM) in determining the required return on an asset in the capital market ?Solution
The Capital Asset Pricing Model (CAPM) estimates the required return on an asset by considering the systematic risk (beta) of the asset relative to the market . It uses the risk-free rate (such as the return on government bonds) and the market risk premium (the return expected from the market above the risk-free rate). This model assumes investors are rational and markets are efficient, helping investors make decisions based on the expected return given the asset's risk.
Find the cost of manufacturing each article if a manufacturer estimates that on inspection 22% of the articles he produces will be rejected. He a...
A shopkeeper purchased 70 kg of radish for Rs. 560 and sold the whole lot at the rate of Rs. 14 per kg. What will be his gain percent?
An item's label price is 40% more than its original price. The shopkeeper manages to earn 30% profit on it. If the label price exceeds the sale price by...
The cost price of two cameras 'C' and 'D' is Rs. 40,000 and Rs. 50,000 respectively. The shopkeeper marked up the prices of camera 'C' and 'D' by 60% an...
After getting two successive discounts, Seema got a shirt at ₹153, for which the marked price was ₹200. If the second discount was 15%, the first d...
A dishonest dealer professes to sell his goods at cost price, but he uses a weight of 600 gm for the kg weight. Find his gain per cent.
- A woman bought a handbag at an 8% discount. If she had bought it at a 16% discount, she would have paid ₹1600 less. Find the market price of the handbag.
Marked price of an article is Rs.1250 more than the cost price. When the same article is sold at a discount of Rs.500, the profit percent earned is 25%....
One article is sold at 10% profit while other is sold at 5% loss such that the difference between their selling prices is Rs. 180. If the cost price of ...
The shopkeeper purchased an article for Rs. "X." He marked the article __________% above its cost price and allowed a ________% discount on the marked p...