Question
Which of the following best describes the interest on
government bonds?Solution
• The risk-free rate is the theoretical return on an investment that carries zero risk of default. • In practice, no investment is entirely risk-free, but government bonds (especially those of stable governments) are considered the closest proxy since they are backed by sovereign authority and the likelihood of default is negligible. • Hence, the interest on government bonds is generally treated as the risk-free rate in models like CAPM (Capital Asset Pricing Model).
- Below are given a few sentences with their parts jumbled in a random order. Below the sentences are given possible rearrangements of the parts. You need to...
Which of the following is the third sentence in the paragraph?
The agriculture sector plays a significant role in carbon trading(1), and livestock production can release greenhouse gas into the atmosphere (2)Agri...
Which of the following is the third sentence of the passage?
Which should be the second sentence after rearrangement?
Which one among the following is the third sentence to make the paragraph coherent?
 Which should be the first sentence after rearrangement?
Directions: In each of the following questions, a sentence is given with three words marked as (A), (B), and (C). These words may or may not be placed ...
In the questions given below, a sentence has been divided into four fragments (A), (B), (C) and (D) and is arranged (not necessarily in the correct ord...
Directions: In each of the following questions, a sentence is given with three words marked as (A), (B), and (C). These words may or may not be placed ...
Relevant for Exams:
