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).
Given that (3a + 7b = 54) and (ab = 24), determine the value of (9a2 + 49b2).
The certain sum amounts to Rs11313.5 in 2(1/2) years at 12% p.a., interest compounded 10 months. The sum (in Rs) is:
Find the number of zeroes in 18 × 125 × 20 × 32.
If (2a + b)/(3b - 2b) = 13/2 then 'b' is what percent of 'a'?
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   = ?If (a + b) = 17 and (a2 + b2) = 145, then find the value of (a × b).
If x² + y² + z² = xy + yz + zy (x≠0), then the value of (5x+3y-4z)/2x is
when x =4 and y =-6 then find the value of 27x³ +58x²y +31xy² +8y³?
What will come in the place of question mark (?) in the given expression?
?2 = (392 × 224) ÷ (112 × 28) + 62
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