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).
Select the correct active voice of the given sentence.
They were questioned by the immigration officer.
The General presented us a detailed battle plan.
- Select the correct passive form of the given sentence.
The peon did not ring the bell on time. - Select the option that expresses the given sentence in passive voice
The chef has prepared a delicious meal. Select the correct active form of the given sentence.
Why is peace being demanded by you?
Choose the option that is the passive form of the sentence.
Switch off the television.
Choose the best way to complete these passive voice sentence
A story ______
A) Jeopardise B) Sumptuous C) Extravagant D) Indigenous
The sentence has been given in Active/Passive Voice. Change the voice to Passive/Active.
Sikha was watching tenses
The reptiles were meant to be used as exotic pets as well as for other nepharious uses.
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