What is the total amount of money to be paid back at the end of 3 years for the loan of 175 000 lira withdrawn from the bank for housing need with an annual compound interest of 15%? A) 270 700 B) 267 500 C) 266 153 D) 264 175 E) 269 125
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.
13 - What is the total amount of money to be paid back at the end of 3 years for the loan of 175 000 lira withdrawn from the bank for housing need with an annual
A) 270 700
B) 267 500
C) 266 153
D) 264 175
E) 269 125
Step by step
Solved in 3 steps with 2 images
