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
*************************************************************************************
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?