Analysts have evaluated the expected returns of IBM and HP stocks based on the revenues and earnings forecast for the upcoming 12 months. IBM has an expected return of 11.2% and risk of beta = 0.9, while HP has an expected return of 12.7% and beta = 1.3. The market risk premium is 7% and the T-Bill rate is 4%.

According to CAPM, how do you valuate these two stocks? Which one is a better buy?

Determine the length of the rotating string : A string trimmer is a tool for cutting grass and weeds; it utilizes a length of nylon "string" that rotates about an axis perpendicular to one end of the string. What is the length of the rotating string |

How to calculate the chemical potentials of benzene : A mixture is formed from 5.0 mol of liquid benzene and 5.0 mol of liquid toluene at 25 oC and 1 atm. Assume that the mixture is ideal. Use ?Gof (benzene,l) = 90.0 kJ/mol, ?Gof (toluene,l) = 100.0 kJ/mol, |

What is the kinetic energy of the detected proton : An experimenter bombards a target of 54Cr with alpha particles such as 4He + 54Cr -> p+ 57Mn Suppose the incoming alpha particle has 26MeV kinetic energy in the lab, What is the kinetic energy of the detected proton |

What is the implied pure rate of interest : Riordan's default risk premium has been estimated at 2.5%, its liquidity risk premium is about 2%, and its maturity risk premium is 3%. inflation is expected to be 5% in the bond's first year and 3% in its second year. What is the implied pure rat.. |

Which one is a better buy : According to CAPM, how do you valuate these two stocks? Which one is a better buy? |

Find the minimum laboratory kinetic energy : Consider the reaction 4He + 40Ca -> 3H + 21Sc Find the minimum laboratory kinetic energy for the 4He projectile if 40Ca is stationary |

Determine the standard free energy of dissolution of glucose : The concentration of the saturated solution of glucose in water is 4.0 M under standard conditions. Find the standard free energy of dissolution of glucose |

Determine the saturated reactance in per unit : The armeture leakage reactance is 0.10 per unit on the generator rating as abase. Find(a) the unsaturated value of the synchronous reactance inohms per phase and per unit, (b) the short-circuit ratio, and (c)the saturated reactance in per unit and.. |

What is the magnitude of the boys acceleration : a 26.5 kg boy slides down a steep slide at a water park that is 10.9 m long and angled 75 degrees above the ground. what is the magnitude of the boys acceleration as he travels down the slide |

## Define and discuss the importance of the time value of moneyDefine and discuss the importance of the time value of money concepts including compounding (future value), discounting (present value), and annuities. Why do organization leaders need to understand these concepts? |

## Use the approxiimate yield formula or a handheld financialUse the approxiimate yield formula or a handheld financial calculator to find the rate of return on this load fund; it was purchased a year ago, and its dividends and capital gains distributions over the year totaled $1.05 a share. (Hint: As an in.. |

## Describe the statement of cash flowsDescribe the statement of cash flows and why it is important to financial decision making. |

## What are the steps for deriving the efficient frontierWhat are the steps for deriving the efficient frontier. |

## Explain summarising the effect appraising responsesExplain Summarising the effect appraising responses and brief explain why this effect appears reasonable |

## How much additional short-term fundingIf Mitchem expands its receivables and inventories using its short-term line of credit, how much additional short-term funding can it borrow befor its current ratio standard is reached? |

## What required reserves ratio is impliedIf the bank holds $65 million in deposits and currently holds bank reserves such that excess reserves are zero, what required reserves ratio is implied? |

## What is the bonds nominal coupon interest rateO'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $850. What is the bond's nominal (annual) coupon interes.. |

## What is its coefficient of variationA stock has an expected return of 0.10 and a variance of 0.24. What is Its coefficient of variation? |

## Interest rate method problemsInterest Rate Method Problems : Calculate the monthly payments if you forgo the $2,500 rebate and finance your new car through the dealership. |

## Evaluate an employee benefits planDetermine what components can be included in a cafeteria plan? What types of employee compensation plans do you recommend for the company that you are evaluating? |

## What is the adverse selection problemWhat is the adverse selection problem? How does adverse selection affect the profitable management of an insurance company? |

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