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).
Find the unit digit in (257)45 × (248)73.
A Student was asked to add 8 and subtract 5 from a number. By mistake, he added 5 and subtracted 8. If his answer is 11, what should be the correct answer?
- What is the remainder when
Which term of the arithmetic progression 88, 90, 92, 94... is 142?
15Â Â Â Â Â Â Â Â Â Â 15Â Â Â Â Â Â Â Â Â Â 60Â Â Â Â Â Â Â Â Â Â 540Â Â Â Â Â Â Â Â 8650
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