Correct equilibrium rate of return for a security

Correct equilibrium rate of return for a security

Focus on general finance questions based upon readings from Chapters 1 and 6 of your textbook.

In this assessment, you will explore various aspects of the business environment, including the role of financial managers. Financial managers are known as the agents of company owners (stockholders) who are tasked with achieving the goal of maximizing shareholder wealth using tools of financial markets. You also receive an introduction to the various types of financial markets and the relationships between interest rates and other economic variables.

Introduction

This assessment focuses on general finance questions based upon readings from Chapters 1 and 6 of your textbook.

Instructions

Complete and submit the Assessment 1 Template [DOCX].

Use references to support your answers as needed. Be sure to cite all references using correct APA style. Your responses should be free of grammar and spelling errors, demonstrating strong written communication skills.

Competencies Measured

By successfully completing this assessment, you will demonstrate your proficiency in the course competencies through the following assessment scoring guide criteria:

• Competency 1: Analyze financial environments and concepts.
  • Evaluate ethical nature of an insider trading case.
  • Explain why wealth maximization is more desirable than profit maximization as a goal for any company.
  • Classify four market transaction types correctly.
  • Classify 5–7 market securities correctly.
  • Explain the shape of the yield curve with respect to the unbiased expectations and liquidity premium theories.
• Competency 2: Apply financial computations and processes.
  • Calculate the correct equilibrium rate of return for a security.
• Competency 3: Communicate effectively and professionally.
  • Convey clear meaning through appropriate word choice and usage