A debt of $6434is to be settled by two equal payments due in 1 month and 7 months respectively. Determine the amount of the equal payments if money is worht 6% compounded monthly and the focal date is today
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.
A debt of $6434is to be settled by two equal payments due in 1 month and 7 months respectively. Determine the amount of the equal payments if money is worht 6% compounded monthly and the focal date is today.
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