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 of the following motions can be moved only in Lok Sabha?
1. Adjournment motion
2. Cut Motion
3. Non-Confidence Motion ...
Eminent Lalitha Lajmi passed away at the age of 80, who was she?
Which of the following is not matched correctly?
Which animal is engraved on most of the Harappan seals?
Which one of the following states recently launched ‘Single Click Pension Delivery Scheme ‘?
काजरी कहाँ है ?
स्वेज नहर किस-किसको जोड़ती है ?
Which among the following committee recommended the establishment of UGC?
Education comes under which list in the Seventh Schedule of the Indian Constitution?
Xiomara Castro has become the first-ever female President of which nation?
