Hi, these Are Multiple Choice Questions below. Just select the correct one no need of...
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Finance
Hi, these Are Multiple Choice Questions below. Just select the correct one no need of much explanation. Subject- Financial Management.
Question 1).
Big Bank charges 5% compounded semi-annually and Little Bank charges 5.0% compounded quarterly on its' loans. Which bank would you prefer to borrow from?
Select one:
a. impossible to decide.
b. Little bank
c. Neither
d. Big bank
Question 2).
The risk-free rate is 8% and the expected return on a market portfolio is 13%. If a share has a beta of 1.2, what is its expected return?
Select one:
a. 15.5%
b. 17%
c. 16.25%
d. 14%
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