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).
Direction: Identify the sentence in which the given phrasal verb is used CORRECTLY.
Bring up
A. The viral video of the skateboarder's in...
The express train unexpectedly called out the station near my office, so I was early today.
I. It is the most efficient method ever.
II. It is still highly inefficient, and this inefficiency inspires hope.
(a) Despite
One who studies words and languages
Direction: Identify the sentence in which the given phrasal verb is used CORRECTLY.
Bring About
A. The old computer can't bring about th...
Choose the correct word that can replace the given phrase.
a person who is excessively devoted to a particular religion or belief
Find the appropriate Phrasal verb.
The old man ________ without any trouble last night.
They all contributed to get Ajay a birthday present.
Directions: Sentences are given below with phrasal verbs highlighted in bold that may be grammatically or contextually wrong. Find the correct answer f...
That cannot be taken away
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