Business
Yield to Maturity
Yield to Maturity: The yield to maturity (YTM) is that discount rate which causes the present value of the promised payment stream to equal the…
Financial Management
Business
Why bond is called a “Fixed Income Securities”?
Bond is called a “Fixed Income Securities” An investment that provides a return in the form of fixed periodic payments and the eventual return of…
Business
Valuation
Valuation The process of determining the value of an asset or company is called valuation. Valuations can be done on assets (investments in marketable securities…
Business
Factors which Influence Business Risk
The uncertainty of profit is called business risk. There are many reasons for business risk. Such as – strike, labor dissatisfaction change of government policy.…
Business
How is the riskiness of portfolio measured?
Investors rarely place their entire wealth into a single asset or investment. Rather, they contrast a portfolio. A portfolio is a combination of two or…
Business
Differentiate between Arbitrage Pricing and Capital Asset Pricing Theory
The capital asset pricing model (CAPM) provides a formula that calculates the expected return on a security based on its level of risk. The formula…
Business
Efficient Frontier
Efficient Frontier The efficient frontier represents that set of portfolios that have the maximum rate of return for every given level of risk, or the…
Business
Risk Premium
Risk Premium: According to Beasley and Brigham, “The portion of the expected return that can be attributed to the additional risk of an investment it…
Business
Differentiate between Portfolio Risk and Stand-alone Risk
Investors rarely place their entire wealth into a single asset or investment. Rather, they cons trust a portfolio. A portfolio is a combination of two…
Business
Portfolio Management and its objectives
Investors rarely place their entire wealth into a single asset or investment. Rather, they cons trust a portfolio. A portfolio is a combination of two…
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