Accounting Problems Essay Example | Topics and Well Written Essays - 250 words

Accounting Problems - Essay Example a) A project with a beta of 1.3 requires a return greater than 16.5% in order to add value b) The slope of the SML can be calculated by referring to any two points on the SML, for example the points representing Assets 1 and 2. Slope is equal to difference in return divided by difference in beta (.175 - .125)/(1.5 - .05). c) If Asset 2 has an IRR greater than15% then it should be accepted (according to the SML and the firm objective of maximizing value. d) All projects plotting on the SML have an NPV of zero Question 10 E(R) = Rf +ÃŽ ²*(Rm –Rf) E(R) = 0.03 +1.2*(0.04) Risk adjusted rate of return= 7.80% Question 11 Correct statements a) Positive NPV assets plot above the line and are considered to be underpriced b) The risk-free asset has a beta of zero and the market portfolio has a beta of one c) In equilibrium all financial assets will plot on the SML line and have an NPV of zero. d) All assets, securities and portfolios which plot on the SML are efficient. Question 13 True , because the portfolio is less risky

History Discussion Research Paper Example | Topics and Well Written Essays - 500 words - 1

History Discussion - Research Paper Example The great awakening was started by the Wesley brothers, Jonathan Edwards and George Whitefield in England and moved to American colonies during the 1770s (Kidd 23-24). The great awakening ushered in new era in that it allowed people to express their emotions in order to experience and feel great intimacy with God during prayers. The great awakening started at a time when people in America and Europe colonies were questioning the purpose or role of the individual in religion and society. It started at similar time with the enlightenment movement which emphasized on rationality or logic and emphasized the power of individual to realize and understand the world based on scientific laws (Wallis 55). Therefore, people grew to rely more on personal approach to spirituality and salvation rather church doctrine and dogma. In addition, the fighting between political and religious groups in England came to a halt with the onset of the glorious revolution of 1688, an occurrence which led to establishment of the Church of England as the only church of the country in turn; other religions such as Catholicism and Judaism were oppressed and suppressed. Politically, it led to stability because of everybody practiced the same religion. However, on religious front, it created complacency and spiritual hunger or dryness among believers. After some decades of religious complacency in America and England colonies, the spiritual revival or renewal of the great awakening was established (Kidd 61). The great awakening led to significance change in the American society in that it prepared them for war of independence. Many years before the war, revivalism enlightened people that they should be courageous when confronting religious authority and that when churches were still oppressing the believers and not heeding to their expectations, the people would break off and create new churches (Wallis 45). Throughout the period of great awakening, Colonist understood that