Ba323 brincks Study guides, Class notes & Summaries

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BA323 Brincks Exam 2  Solved 100% Correct!!
  • BA323 Brincks Exam 2 Solved 100% Correct!!

  • Exam (elaborations) • 14 pages • 2023
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  • §Perpetuity FORMULA - •PV = PMT/I §Sharpe Ratio FORMULA - •(Return - risk-free rate) / standard deviation §CAPM FORMULA - •ri = rRF + (rM - rRF)bi What is the time value of money? - The concept that money you have now is worth more than the identical sum in the future due to its potential earning capacity. §Why is inflation so important for cash flows? - Important for inflation, a dollar is worth more today than in the future due to interest rates increasing. HOW DOES COMPOUNDIN...
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