According to the CAPM model, Expected Return = Risk free rate + Risk premium. Here, what does the risk free rate compensate the investor for?
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).
Calculate the perimeter of a square when the area of a circle that circumscribes it is 486 square centimeters. (Assume π = 3 for calculations.)
A rectangular plot of size 40 m (length) 20 m (width) is to be grazed by a horse leaving a margin of 5 m from all sides for growing plants and also ...
The value of tan2 θ + cot2 θ − sec2 θ cosec2 θ is:
Suresh started his journey form P to Q by his bike at the speed of 40 km/h and then, the same distance he travelled on his foot at the speed of 10 km/h ...
After increase in sugar prices by 20%, a person is able to buy 2 kg less sugar for Rs. 540. Find the original and increased price of sugar per kg.
...The ratio of the curved surface area and total surface area of a cylinder is 16 : 17 . If the curved surface area of the cylinder is 308m². Find th...
Determine the volume (in cubic centimeters) of a cuboid whose adjacent face areas measure 320 cm², 480 cm², and 216 cm², respectively.
A right triangle with sides 7 cm, 24 cm, and 25 cm is revolved about the side of length 24 cm. What is the volume of the solid obtained?
Length of a rectangle is equal to the side of a square. If area of the square and rectangle is 529 m2 and 299 m2, respectively the...
An item costs ₹400. During a festival sale, a company offers a sale discount that offers x% off on its regular price along with a discount coupon of 1...