Description
Case---instructions attached
- Understand and calculate present and future value.
- Identify and explain the risk and reward trade-off in investments.
- Analyze investments using the capital asset pricing model.
- SLP---instructions attached
- Identify and explain the risk and reward trade-off in investments.
- Analyze investments using the capital asset pricing model.
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Explanation & Answer
Answer to Slp is below.
Running head: PRESENT VALUE AND THE RISK/RETURN
Present Value and the Risk/Return Trade-off
Name
University Name
FIN/501
Aug 06, 2017
1
PRESENT VALUE PRESENT VALUE AND THE RISK/RETURN
2
Amazon.com, Inc.
The company chosen for the analysis is Amazon.com which is the largest e-commerce
industry in the world. The company was founded on July 5, 1994, by Jeff Bezos which has
it’s headquarter in Seattle, Washington, US. It is the largest internet based retailer in the
world which was initially started as an online book store and later diversified to sell video
games, TV, Blue- rays, furniture, toys, and jewelry.
Over the years, the company has experienced increasing revenue. The revenue of the
company as on 31 Dec 2014 was $88.89 which increased to $107.01 billion on Dec 31,
2015.Further, it increased to $135.99 billion on Dec 31, 2016. ("AMZN Income Statement,”
N.p.)The majority of company’s revenue is generated through online sales of its retail
product...