According to the CAPM model, Expected Return = Risk free rate + Risk premium. Here, what does the risk free rate compensate the investor for?
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 variable is compared to working capital when calculating the working capital turnover ratio?
Commission received in advance is of the nature of
Which of the following is/are the eligibilities to participate in the Pradhan Mantri Shram Yogi Maan-Dhan Yojana?
I- The workers in the age gr...
The capital asset pricing model (CAPM) suggest that, the cost of equity is a trade-off between :
Which of the following is correct regarding Risk Adjusted Returns on investment?
I. It is the process where a Risk in ...
Consider the following statements regarding economic survey 2022-2023:
1. There was diversion of Wholesale Price Inflation (WPI) and Con...
In Pradhan Mantri Suraksha Bima Yojana, what is the maximum age up to which a beneficiary can join the Scheme?
Which of the following is incorrect regarding LM curve?
The Competition Commission of India (CCI) approves the proposed combination involving the acquisition by Housing Development Finance Corporation Limited...
A company fails to accrue wages for march that will be paid in April. The company’s year-end balance sheet liabilities: