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).
Which of the following sequences represents the correct English dictionary order of the following words?
1. React
2. Real
3. Rear
4. Reality
5. Reason
Select the correct option that indicates the arrangement of the given words in the order in which they appear in an English dictionary.
1. Abatta...
According to dictionary, which of the following word will come at third position?Â
Arrange the given words as in a dictionary and tick the one that come last.
If in the given number "5637516842", from the left, all the even positioned digits are increased by 1 and all the odd positioned digits are decreased by...
Arrange the given words in the sequence in which they occur in the dictionary:
1. Manual
2. Manifest
3. MeaningÂ
4. Meeting
5. Menu
Select the correct option that indicates the arrangement of the given words in the order in which they appear in an English dictionary.
1. In...
Arrange the following words as per the order in a dictionary.
1. Table                                    ...
Arrange the given words as in a dictionary and tick the one that come second.
Which one of the following will be the second last according to the English dictionary?
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