Question
Which of the following will be the features of Zero
Risk?                      I.       It does not have any uncertainty with it                    II.       There is no variation in net cash flow                   III.       Return on such investment would be higherSolution
Zero risk means there is no uncertainty associated and the cash flows are known with no probability of variation. Since the risk is not existent and cash flow or benefits are known, the returns are lower in such cases. For example, the return on Government bond would be lower than that on a corporate bond due to negligible or no risk associated with Government bond.Â
Interest payable on the bonds is a/an _______
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On Jan 1, 2017 the position of V. Mathur was as follows:
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