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Q. Illustrate the Scope of Financial Management?
Financial management as an educational discipline has undergone notable changes over the years with regard to its scope of functions. All at once the financial manager's role as well has undergone fundamental changes over the years. Study of the modification that has taken place over the years is known as 'Scope of Financial Management'.
In order to have an effortless understanding and better exposition to the changes it is necessary to divide the scope into two approaches:
(A) Traditional Approach
(B) Modern Approach
Assume that an investor invests $X in a 3-year zero coupon Treasury security. Three years from now, the total return received would be:
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