Question
According to the CAPM model, Expected Return = Risk free
rate + Risk premium. Here, what does the risk free rate compensate the investor for?Solution
The CAPM compensates investors for the time value of their money. In theory, the risk free interest rate is the minimum return an investor expects for any investment because he will not accept additional risk unless the potential rate of return is greater than the risk-free rate. In practice, risk free rate does not exist because even the safest investments carry a very small amount of risk. However, the long term G-sec rate is used as a proxy to risk-free rate of return (in India 10 year G-sec rate is used as risk free rate).
Which of the following is an Electrical pathway to transfer data among different parts of the computer?
Which of the following operating systems can be classified as both, multitasking and multiprogramming?
(i) MS-DOS
(ii) Windows 10
(iii) Linux
Examples of fax machines and imaging systems fall under the category of:
Function to find out how much money you will have in the bank in you invest over a fixed period, using a fixed rate of interest.Â
In first generation of computers, they used ___________
It is used to connect a pen drive to computer.
What is the purpose of the BIOS (Basic Input/Output System) in a parent computer?
Which of the following represents the smallest unit of data in a computer?
Which of the following operating system is used developed by Microsoft?
What does E-commerce enable companies to do?
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