If the daily rate is 0.05%, then the periodic rate would be „ the APR would be and the EAR would be. O A. 0.05%; 20.02%; 18.25% B. 5.00%; 20.02%; 118.25% c. 0.05%; 18.25%; 20.02% O D. 0.005%; 0.05%; 5.05%

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Q: Suppose the current forward curve for one-year rates is the following: Time Period      Forward…

A: The conceptual formula used:

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A: The question is multiple choice question. Required  Choose the Correct Option.

Q: Given the rate per compounding period, find r, the annual rate 0.25% per month

A: P =R / M Here P = Rate per compounding period R= Annual rate M=Times amount compounded

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Q: What would be “The 3x6 month implied forward rate“ if SpotOX6=0.410% and SpotOX3=0.212%?

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A: Effective rate = 9% Nominal rate = r Number of compounding per year (m) = 12

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A: Year Price 2016 1.45 2017 1.78 2018 1.26 2019 1.71 2020 1.91

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Q: Please don't use AI solution

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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.