Sources of finance

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Question

Within CAPM (the capital asset pricing model)…

Select one:

A. the risk-free rate is usually higher than the return in the market.

B. the higher the beta the lower the required rate of return.

C. beta measures the volatility of an individual stock relative to a stock market index.

D. two of the above are true.

Which of the following securities represents an unsecured promissory note issued by a corporation?

Select one:

A. Certificates of deposit

B. Savings accounts

C. Commercial paper

D. Money market fund

A vendor offers you trade credit of 2/10, net 60. The value of the discount is the equivalent of ________%.

Select one:

A. 12%

B. 15%

C. 21%

D. 32%