. If the risk-free return (Rf) is 6%, Beta (β) is 1.5, and the market rate of return (Km) is 10%, what is the expected rate of return?
Using the Capital Asset Pricing Model (CAPM):
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Additional Knowledge
· A higher Beta (>1) means the stock is more volatile than the market.
· A lower Beta (<1) means the stock is less volatile.
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20 Marks
12 Mins English English50 Questions100 Marks60 Mins English English10 Questions20 Marks12 Mins English| LIST-I Concept |
LIST-II Formula |
| A. Present Value |
I. Cash flow x (1+r)⁴ |
| B. Future Value |
II. Cash flow/ (1+r)⁴ |
| C. Future Value of Annuity |
III. R (PVIFi,n) |
| D. Present Value of Annuity |
IV. R (FVIFAi,n) |
When foreign currency assets and liabilities match in terms of amount of exposure and timing of maturities, it is described as:
The portfolio theory articulates diversification to reduce which of the following risks?
Determine the P/V ratio from the following particulars.
· Total Fixed Cost = ₹12,000
· Actual Sales = ₹48,000
· Margin of Safety = ₹8,000
A proposal requires a cash outflow of ₹18,500 and is expected to generate cash inflows of ₹8,000, ₹6,000, ₹4,000, ₹2,000 and ₹2,000 over next 5 years respectively. The payback period is
Suggested Test Series
Suggested Test Series
