X2

CHAPTER I INTRODUCTION Background of the Study “Believing that you can accomplish what you want to accomplish is one of the most important ingredients in the recipe of success” (Maddux, 2002). Indeed, believing in one’s capability is very important in gaining self-efficacy. Unlike self-esteem, which reflects how a person feel about their worth or value, self-efficacy reflects how a person believes in his own capabilities in performing a specific tasks. According to Albert Bandura (as cited in…

Adding the risk-free government securities would result in a lower beta for the new portfolio. The new portfolio beta will be a weighted average of the individual security betas in the portfolio; the presence of the risk-free securities would lower that weighted average. q. The comment is not correct. Although the respective standard deviations and expected returns for the two securities under consideration are equal, the covariances between each security and the original portfolio…

This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Solutions Manual Using a spreadsheet, financial calculator, or trial and error to find the root of the equation, we find that: IRRNX-20 = 20.34% The IRR criteria implies accepting the NX-20. c. The profitability index is the present value of…