Questions from Corporate Finance

Q: What is the relation between the variance and the standard deviation?

What is the relation between the variance and the standard deviation?

Q: What relation do we generally observe between risk and return when we

What relation do we generally observe between risk and return when we examine historical returns?

Q: What type of return tells you the average compounded return earned by

What type of return tells you the average compounded return earned by an investor?

Q: What are the two components of total risk?

What are the two components of total risk?

Q: How is beta estimated?

How is beta estimated?

Q: How would you interpret a beta of 1.5 for an

How would you interpret a beta of 1.5 for an asset? A beta of 0.75?

Q: What name is given to the relation between risk and expected return

What name is given to the relation between risk and expected return implied by the CAPM?

Q: Explain what a convertible bond is?

Explain what a convertible bond is?

Q: What is the compounding period for most bonds sold in the United

What is the compounding period for most bonds sold in the United States?

Q: The CFO of a certain company always wears his green suit on

The CFO of a certain company always wears his green suit on a day that the firm is about to release positive information about his company. You believe that you can profit from this information by buy...