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).
Revealed preference theory assumes
A researcher has to consult a recently published book. The probability of it being available is 0.5 for library A and 0.7 for library B. Assum...
Dumping refers to:
What is the target Fiscal Deficit as a % of GDP for FY23 in the Union Budget 2022-23?
Classical economists argue that money is neutral because
If the fiscal deficit of an economy be 3% of GDP and if the current account deficit also be 3% of GDP in a particular year for that economy, then its ag...
Oligopolies can end up looking like competitive markets if the number of firms is
If elasticity is ‘e’, and price of the product is B, MR=?
Short-run returns to fixed supply of factor of production are known as
According to monetarists view, in the long-run, the Philips curve
