For anyone | Accounting homework help

 QUESTION

Investors need to know how much risk they have to take to confidently expect a certain percentage return. Likewise, managers want to know what return shareholders require so that they can decide how to meet those expectations.

Respond to the following in a minimum of 175 words:

  • Select 2–3 of the topics below and discuss how they each influence financial decisions regarding risk and return:
  • The capital asset pricing model (CAPM)
  • The constant–growth model
  • Compute forward-looking expected return and risk
  • Risk premiums

RESPOND TO THE FOLLOWING STUDENTS

David post

 

The 2 topics I have chosen is the Capital asset pricing model and the Compute forward-looking expected return and risk. To me these two models are the best way to help me determine which way to go in when purchasing or considering investments. The Forward-looking expected return and risk method has the advantage of your research and other advice to determine what kind of return you can reasonably expect which is important when investing as you are going to spend money so you want to make sure that you get it back and some extra. In addition, you will be investing time so you need effective tools to make sure you are using it well. The Capital asset pricing model determines if it is wise or even too risky to invest in a particular stock. Also determines not only if a stock is safe to invest in but also will I make money back and about how long am I looking at to make it back. The formula is Eri=RF+Bi (Erm-Rf) to use it effectively.

Gerardo post

 

The Capital Asset Pricing Model (CAPM) alludes to the connection between fundamental danger, particularly stocks, and expected to return on the resources. The CAPM is generally utilized for valuing the hazardous protections and for producing expected profits from resources because of the danger of such resources and capital expenses. The beta of a venture is a figuring of how much worth the speculation would bring to a market-like portfolio. At the point when a stock is more unstable when contrasted with the market, the beta will be higher than one. At the point when a stock has a beta worth short of what one, the equation suggests the danger of a portfolio is brought down. The constant growth model, or Gordon Growth Model, is a method of esteeming stock. It expects that an organization’s profits will keep on increasing at a steady development rate uncertainly. You can utilize that presumption to sort out what a reasonable value is to pay for the stock today dependent on those future profit installments. For an organization that delivers out a consistently rising profit, you can appraise the estimation of the stock with a recipe that accepts that continually developing payout is the thing that’s liable for the stock’s worth. You can utilize a numerical recipe called the steady development model, or Gordon Growth Model, to make this estimation or locate a stock valuation mini-computer apparatus on the web or in an advanced mobile phone application to do the calculation for you.

Keila post 

Week 5 DISC.xlsx is uploaded below

To begin, there is a relationship between both variables with a str.xlsxong positive linear relationship. The regression model is y = 4.9216x – 25.168. Telling us that the slope is 4.921 significant and that every dollar spent in advertisement, equates in sales at a 4.921 rate. The intercept is -25.168 meaning that if money isn’t spend on advertisement then sales will decrease $25.168. The value of the regression coefficient is r=0.8237. Therefore r^2 is 0.6785. This tells us that 67.85% of sales is the dependent variable. The model underestimates spending in advertisement with $950,000. Sales would be $4,675,494.83.

 

Deonicia post

 Data565_week _5_Discussion.xslx is uploaded below

Do you observe a relationship between both variables?

Yes, there is a linear relationship between both variables.

Use Excel to fit a linear regression line to the data. What is the fitted regression model? 

The fitted regression model is y = 4.921x -25.168

What is the slope? What does the slope tell us? Is the slope significant?

The slope is 4.9216 and shows us an increase in advertisements it tends to increase sales as

well. Yes, it is significant.

What is the intercept? Is it meaningful?

The intercept is -25.168 and yes, it is meaningful since sales are affected. 

What is the value of the regression coefficient, r? 

r = 0.8237

What is the value of the coefficient of

determination, r^2? 

r^2 = 0.6785

What does r^2 tell us?

r^2 tells us that a 67.85% variation in sales can be projected by the variation in the

advertisement.

Use the model to predict sales and the business spends $950,000 on the advertisement. Does

the model underestimates or overestimates sales?

Sales = -25.1682, Advertisement = 4.9216 

-25.1682+4.9216(950) = 4650.3518 underestimated.







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10