calculation for debt. Nike’s total interest expense was $58.7 million‚ so their cost of debt was found to be 4.3%. Joanna used a tax rate of 38% in her calculations‚ making Nike’s cost of debt after tax to be 2.7%. Joanna decided to use the CAPM model in her calculation of Nike’s cost of equity. She used the risk-free rate of 5.74% on a 20-year Treasury bond‚ the geometric mean for market risk premium from 1929 to 1999 which was 5.9%‚ and Nike’s average beta from 1996 to 2001‚ which was 0.80 to
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Outline and evaluate the working memory model (12 marks) Baddeley and Hitch proposed that memory has 4 components. The central executive‚ phonological loop‚ visuospatial sketchpad and the episodic buffer. The central executive decides how to share out and direct attention to incoming information. The phonological loop can be thought of as a maintenance rehearsal mechanism for retaining verbal information. It is sub-divided into two other components‚ the phonological store (inner ear)‚ which holds
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Outline and Evaluate the Working Memory Model The working memory model is a theory for how short-term memory works‚ and an expansion of the views expressed in the MSM theory. Baddeley and Hitch in 1974 felt that STM was not just one store but a collection of different stores. These concepts lead them to form a model which consists of three slave systems; the central executive‚ the phonological loop and the visuo-spatial sketchpad. They used the phrase ‘working memory’ to refer to the division of
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America’s Next Top Model was created by Tyra Banks in 2003. The show has been popular and successful in it’s ratings‚ now going on it’s 21st cycle of models (Sauers). One of the show’s values is that they believe in helping girls boost their self-esteem‚ showing them that they are beautiful in their own way. In one particular episode‚ they worked with young girls who had been bullied by matching them with a contestant mentor. Although the show seems to be making a positive impact on their viewers
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have high expectations for myself such as being a role model. Being a role model for others‚ I have to think twice regarding my actions and its consequences. Being a leader is to have the courage of creating an impact and leaving a mark behind your path to inspire. I would like to be a positive influence for others and hope that my inspirations are contagious. At home‚ I am a leader as well. I have a younger sister and I want to be a role model for her because the people you were raised in can influence
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the footsteps of the consummate role model‚ with unique and powerful qualities which you aspire to attain. This may be the most difficult task of looking up to a role model. All role models are the ideal people you want to follow‚ your idea of how you want to be in the future. To me‚ a role model is someone in my life that has influenced me in a positive way. They have helped shape the way I am in the present and make me what I will be in the future. Role models are the people that I can look to for
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an active area in the finance literature. Capital Asset Pricing Model (CAPM) is one of the economic models used to determine the market price for risk and the appropriate measure of risk for a single asset. The CAPM shows that the equilibrium rates of return on all risky assets are function of their covariance with the market portfolio. This theory helps us understand why expected returns change through time. Furthermore‚ this model is developed in a hypothetical world with many assumptions. The
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A description of the ABC model of crisis intervention cannot be complete without an understanding of the nature of a crisis itself. Inherent in a traumatic and often unexpected event is the element of human reaction‚ which is subject to a variety of factors. Influences such as the psyche of the individual and predisposition towards resiliency‚ the social and cultural milieu in which crises arise‚ and the nature and severity of the precipitating event all contribute to the terrifying reality of
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Student name: Umar Abdullaev Proposed research topic: The implication of conditional betas on the Fama-French three factor model Introduction CAPM has been an active area of research over the past half century since the introduction of Sharpe development of the capital asset pricing model. Much progress has been made in the early years on the linear relationship between expected return and beta(Black‚ Jensen and Scholes 1972 and Fama and MacBeth 1973). Later studies however show weak
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Chapter 8 Index Models 163 Multiple Choice Questions 1. As diversification increases the total variance of a portfolio approaches ____________. A 0 B 1 C the variance of the market portfolio D infinity E none of the above Answer: C Difficulty: Easy Rationale: As more and more securities are added to the portfolio unsystematic risk decreases and most of the remaining risk is systematic as measured by the variance of the market portfolio. 2. The index model was first suggested by ____________. A Graham
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