Bruno took out a variable rate $10,000 loan on May 5th at prime 4% when prime was set at 3% The prime rate increased % on June 15 How much simple interest does Alex owe if the loan is paid back on July 19? Select one: O a $78,63 Ob $148.50 Oc$69.86

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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.