logo

CAPM Model and Risk Return Analysis

   

Added on  2019-09-26

10 Pages1786 Words160 Views
 | 
 | 
 | 
[DOCUMENT TITLE][Document subtitle]
CAPM Model and Risk Return Analysis_1

Table of ContentsSolution –A...........................................................................................................................................2Solution –B............................................................................................................................................3Solution –C............................................................................................................................................4Solution –D...........................................................................................................................................4Solution – E...........................................................................................................................................4Solution –F............................................................................................................................................5Risk and Return Estimation...................................................................................................................6Risk and Return analyses.......................................................................................................................7References............................................................................................................................................91 | P a g e
CAPM Model and Risk Return Analysis_2

Solution –AFacts of the case During current income year Bega Cheese Ltd, executed a long term sales contract,such contract required the consumers to make a month payment, under sucharrangement Bega Cheese Ltd, stuck with current financial needs, to overcome fromsuch situation the financial management had made arrangement with banker ofcompany and bank is agree to pay present value future inflow, at 7 % discounting rate.Here is a present value of amount realised from customers over a period of 4 years. MonthsPayments (000)Dis Rate PV ( 000)1 $ 10.00 0.9942 $ 9.94 2 $ 10.00 0.9885 $ 9.89 3 $ 10.00 0.9828 $ 9.83 4 $ 10.00 0.9771 $ 9.77 5 $ 10.00 0.9715 $ 9.71 6 $ 10.00 0.9659 $ 9.66 7 $ 10.00 0.9603 $ 9.60 8 $ 10.00 0.9548 $ 9.55 9 $ 10.00 0.9493 $ 9.49 10 $ 10.00 0.9438 $ 9.44 11 $ 10.00 0.9384 $ 9.38 12 $ 10.00 0.9330 $ 9.33 13 $ 10.00 0.9276 $ 9.28 14 $ 10.00 0.9222 $ 9.22 15 $ 10.00 0.9169 $ 9.17 16 $ 10.00 0.9116 $ 9.12 17 $ 10.00 0.9064 $ 9.06 18 $ 10.00 0.9011 $ 9.01 19 $ 10.00 0.8959 $ 8.96 20 $ 10.00 0.8908 $ 8.91 21 $ 10.00 0.8856 $ 8.86 22 $ 10.00 0.8805 $ 8.81 23 $ 10.00 0.8755 $ 8.75 24 $ 10.00 0.8704 $ 8.70 25 $ 10.00 0.8654 $ 8.65 26 $ 10.00 0.8604 $ 8.60 27 $ 10.00 0.8554 $ 8.55 28 $ 10.00 0.8505 $ 8.51 29 $ 10.00 0.8456 $ 8.46 30 $ 10.00 0.8407 $ 8.41 31 $ 10.00 0.8359 $ 8.36 32 $ 10.00 0.8311 $ 8.31 2 | P a g e
CAPM Model and Risk Return Analysis_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents