Can you think of an asset that is truly riskless ?
************************************************************************************* FIN 571 Week 2 DQ 2 FOR MORE CLASSES VISIT www . fin571tutor . com
Suppose rf is 5 % and rM is 10 %. According to the SML and the CAPM , an asset with a beta of −2.0 has a required return of negative 5 % [= 5 − 2 ( 10 − 5 )]. Can this be possible ? Does this mean that the asset has negative risk ? Why would anyone ever invest in an asset that has an expected and required return that is negative ? Explain
FIN 571 Week 2 Individual Assignment Business Structure Advice
Can you think of an asset that is truly riskless ?
************************************************************************************* FIN 571 Week 2 DQ 2 FOR MORE CLASSES VISIT www . fin571tutor . com
Suppose rf is 5 % and rM is 10 %. According to the SML and the CAPM , an asset with a beta of −2.0 has a required return of negative 5 % [= 5 − 2 ( 10 − 5 )]. Can this be possible ? Does this mean that the asset has negative risk ? Why would anyone ever invest in an asset that has an expected and required return that is negative ? Explain
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FIN 571 Week 2 Individual Assignment Business Structure Advice
FOR MORE CLASSES VISIT www . fin571tutor . com
Write a 350 to 700 word response to the following e-mail : Dear Consultant , I am currently starting a business and developing my business plan . I ' m in need of some advice on how to start forming my business . I am not sure exactly how it will be financed and whether or not I want to take on partners . I am interested and willing to learn the intricacies of my options to determine how to best proceed with my plan . Please advise on what my options are , the advantages and disadvantages of each , and possible tax consequences for each scenario ?