CAPM and Stock of Toyota

Essay specific features

 

Issue:

Business

 

Written by:

Gladys J

 

Date added:

August 9, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 544

 

Was viewed:

2622 times

 

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Essay content:

The C.A.P.M. consists of the risk-free rate, the beta of the stock (the risk factor of the stock) and the expected return of the market. The model has as follows: After analyzing and solving this formula, one can get the expected return that we await from the company that is being analyzed in each situation...
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In this case, the expected return of Toyota is being analyzed. Analysis Starting from the risk free rate, we have the rate at which one can invest in an investment with no risk. Of course, there is no actual investment which involves absolutely no risk, and that is why the risk free rate is only a theoretical rate used...
displayed 300 characters

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