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Problem# 01. :

Holding Period Return Based on the following information calculate the holding period return: P0 = $10.00 P1 = $12.00 D1 = $1.22

2. Risk & Return and the CAPM. Based on the following information, calculate the required return based on the CAPM: Risk Free Rate = 3% Market Return =10.5% Beta = 1.2

3 Risk & Return and the CAPM. Based on the following information, calculate the required return based on the CAPM: Risk Free Rate = 3.5% Market Return =10% Beta = 1.08 Valuation - preferred stock 4

Measures of Risk. Address each source of risk that is measured and relate it to two models addressed in this unit. Your response should be at least 250 words in length.

Problem# 02. :

(Part 1) Using a 3.8% discount rate, calculate the Net Present Value, Payback, Profitability Index, and IRR for each of the investment projects below (note, the inflows are for each year). Based on your calculations rank the projects and support you answer. Project 1 Initial Invest= $520,000, Cash inflows of $100,000 for years 1-5 and $50,000 for years 6-10. Project 2 Initial Invest= $1,050,000, Cash inflows of $400,000 for years 1-3, $0 for years 4-7 and $250,000 for years 8-10. Project 3 Initial Invest= $820,000, Cash inflows of $300,000 for years 1-5, $0 for years 6-9 and $100,000 for year 10. (Part 2) Assuming a budget of $1,300,000 what are your recommendations for the three projects in the above problem. Explain. Assuming a budget of $2,100,000 what are your recommendations for the above problem? Explain.

Problem# 03. :

Unit V

Using the CSU Online Library, research the variables that impact the pricing of options. Focus your energy on comparing the attributes of the two widely accepted models used for option pricing: Black

-Scholes and Binomial Models.

Your paper should be completed in Word and be no less than two pages in length following APA format.

Unit VII Paper

Using the CSU Online Library and the unit reading assignment, explore the capital budgeting techniques covered in the unit, NPV, PI, IRR, and Payback. Compare and contrast each of the techniques with an emphasis on comparative strengths and weaknesses. Be sure to show you understand how each is applied and used in capital budgeting decisions.

Use Microsoft Word to complete your answer. Your paper on comparing techniques should be no less than two pages and any references should be cited using proper APA format