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I need help by tonight, as I am confused. I have also been waiting on other assignment and nobody ever got back with any help

I need help by tonight, as I am confused. I have also been waiting on other assignment and nobody ever got back with any help

image text in transcribed Rasmussen College - F490c - Module 04 Assignment Problem 1 1. Companies employ diversification as a risk management technique. Why is it important to diversity? Explain th affect risk and return? Diversity is important because our country, workplaces, and schools increasingly consis of various cultural, racial, and ethical groups. So, we can learn from one another, but first we must hae a level of understanding about each other in order to facilitate co;anpratopm and cooperation. However, no matter how diversified your portfolio is, risk can never be eliminated completely. You can never reduce risk associated with individual stocks, but general market risks affect nearly every stock, so it is also important to diversify among different asset classes. tant to diversity? Explain the importance of diversification and how does it Rasmussen College - F490c - Module 04 Assignment Problem 2 2. Your company is considering several securities. The rate of T-bills is 8.25%. The required return for the market i you are considering if the beta is 1.15? Required return: Using CAPM Required return=risk free rate+(market return-risk free rate)*beta Risk free rate = T-bond=8.25 % Market return = expected market return=11.5% Beta= 1.15 Required rate of return = 11.99% ired return for the market is 11.5%. What is the required return on a security Rasmussen College - F490c - Module 04 Assignment Problem 3 3. Find the beta coefficient given the market data for the stock and the market porfolio. Year 2009 2010 2011 2012 2013 Risk-free rate beta is: Historical Rates of Return stock return return on market -5% 10% 4% 8% 7% 12% 10% 20% 12% 15% 6% . Rasmussen College - F490c - Module 04 Assignment Problem 4 4. Assuming the CAPM, what is the market's expected return with the following information? market return: beta: company's expected return: T-bill yield: 2 18% 10% wing information? Rasmussen College - F490c - Module 04 Assignment Problem 5 5. Use any of the capital budgeting decision rules to determine whether or not to accept the following investmen Explain your reasoning. Investment Year Cash Flow 0 $ (31,000) 1 $ 10,000 2 $ 20,000 3 $ 10,000 4 $ 10,000 5 $ 5,000 Explanation: pt the following investment. Assume the cost of capital of 14%

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