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What is risk free rate of return
There is a 'risk free rate of return' (also known as time preference rate) which is used to compensate for the loss of not being able to invest at any other place. To it a 'risk premium' is added to compensate for uncertainty of receiving the cash flows.
Required rate of return = Risk free rate + Risk premium
Financial Market: Being entrusted with different functions having macro level implications on the nation's economy, the financial system tries to fulfill its role through the f
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A mortgage may be defined as a pledge of property to secure a debt payment; in this context, we will use the term property to mean real estate. If the
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