Question
The capital asset pricing model (CAPM) suggest that,
the cost of equity is a trade-off betweenSolution
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.
The Battle of Chausa was fought between which two historical figures?
Consider the following statements regarding 'NatyaShastra':
1. It is a treatise on art of drama, da...
From which space agency was the spacecraft "Psyche" launched?
Vardhamana Mahavira, a central figure in Jainism, belonged to which clan?
Which city hosted the G20 Agriculture Ministerial meeting from June 15 to 17, 2023?
Where is the first evidence of humans found in India?
Which of the following is not considered part of Sangam literature?
The title of ‘Sardar’ to Vallabhbhai Patel was given by
Which of the following personalities were the famous poetess of Indian Vedic age?
1. Lopamudra
2. Gargi
3. Gosha
4. Meera Ba...
‘Nauroj’ a nine day festival is introduced in India by which of the following king?