Question
The capital asset pricing model (CAPM) suggest that, the
cost of equity is a trade-off between :Solution
Unsystematic risk is the risk related to a particular company and this type of risk which can be eliminated by the investor through diversification of its investment, However systematic risk is market risk which includes Interest rate change, Inflation, Policy change etc. and is un-diversifiable and is measured through the Beta of the stock in the CAPM model. An investor undertakes risk by investing in the stock of a company in expectation of higher return. Higher risk is associated with greater probability of higher return and lower risk with a greater probability of smaller return. This trade-off is assumed by CAPM model also in the cost of equity.
A branch receives goods from the Head Office at an invoice price that includes a 25% markup on cost. If the invoice price of goods sent to the branch is...
Which is not the essential characteristic of Bill of exchange:
A firm extends credit from 30 to 60 days to push sales, increasing receivables by ₹5 crore. Cost of capital is 12%. What is the annual carrying cost?
What is the maximum time allowed to complete a buyback offer from the date of passing a special resolution?
Donation received by Non-Profit Organization for constructing college library is called:
Calculate the inventory turnover ratio:
Provision for Bad & Doubtful Debt is created in anticipation of actual bad debts on the basis of:
GST Council is an apex constitution body. It was constituted by virtue of Article ______ of the Constitution of India.
Which of the following cost are not excluded from the cost of inventories as per AS 2:
An Indian citizen who stays in India for less than how many days during a financial year is considered a Non-Resident Indian (NRI)?
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