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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 is the largest continental shelf?
Which Article of the Indian Constitution prohibits discrimination on the grounds of religion, race, caste, sex and place of birth?
Which Indian social reformer was known as 'Lokhitwadi'?
Which of the following is the name of India's first Nuclear-powered Submarine?
The Uttarakhand government is setting up the state’s first Himalayan honey testing lab at which place?
What is the theme of the third Global Hackathon organized by the Reserve Bank of India?
What is a Green Index?
What is the currency of Albania?
In which year did the World Food Programme (WFP) receive the Nobel Peace Prize?
Which type of vegetation primarily characterizes the taiga biome?