This model believes that the risk factor is not singular i.e., to say there are multiple risk factors which must be factored for determining expected rate of return. These risk ...ReadMore

Determining Portfolio Risk Using William Sharpe’s Approach  According to William Sharpe, portfolio risk is the aggregate of systematic and unsystematic risk. For determining portfolio risk using Sharpe’s approach, first determine ...ReadMore

 If the company that is planning to hedge the foreign exchange risk, is an importer and has to settle the payment in foreign currency, it will have the need ...ReadMore

Investment in bonds cannot be considered completely risk free. Such investment can have the following two types of risk: Interest Rate Risk Reinvestment Risk

Receive a purchase order form your customer. Obtain a proposal from the supplier regarding the estimates. Apply for PO financing and obtain approval from POF Co. The Supplier is paid ...ReadMore

Risk, Return and Portfolio Theory Security Market Line (SML) When the expected rate of return as per CAPM is presented graphically it will be a straight line sloping upward. Such ...ReadMore

Investment banking is a specific division of banking related to the creation of capital for other companies, governments and other entities. Investment banks underwrite new debt and equity securities for all types ...ReadMore

A central bank is the primary source of money supply in an economy through circulation of currency. It ensures the availability of currency for meeting the transaction needs of an ...ReadMore