What is risk free rate of return, Financial Management

Assignment Help:

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

Related Discussions:- What is risk free rate of return

Condition market to book value ratios be misleading, Under what circumstanc...

Under what circumstances would market to book value ratios be misleading? Explain. The Market to Book ratio is helpful, but it is just only a rough approximation of how liquid

Segment margin, Segment Margin This is the amount in which a business s...

Segment Margin This is the amount in which a business segment in a company contributes toward the common or indirect cost of the company. Therefore, it represents that segment'

Objectives of averaging, The two main objectives are: ...

The two main objectives are: To get at a single value: Measures of central value, by considering the mass of data in one single

Modern approach at financial problems, Modern approach at financial problem...

Modern approach at financial problems With the advent of technology and need to tighten shipsdue to competition, financial management became as much a science as art. Efficient

Business organization, what business organization do you preffer ? service ...

what business organization do you preffer ? service concern,trading concern or manufacturing concern

Wacc and cost of common equity, how to get the expected growth rate?

how to get the expected growth rate?

Explain profit maximization approach, Q. Explain Profit Maximization Approa...

Q. Explain Profit Maximization Approach? (i) Best Criterion on Decision-Making:- The goal of revenue maximization is regarded as the best criterion of decision-making as it off

Analyze the practice of democracy, Question 1: Analyze the practice of ...

Question 1: Analyze the practice of democracy as advocated by the early Greek political thinkers. Question 2: To what extent can Man live peacefully with each other wi

Settlement of the index options contract, Settlement of the Index Options C...

Settlement of the Index Options Contract In the index options contract, the premium to be paid or to be received is calculated for each CM after netting the positions at the en

Write a report to outlining the theoretical arguments, QUESTION The Man...

QUESTION The Managing Director of your firm is thinking aloud about an appropriate gearing level for the company: "The consultants I spoke to yesterday explained that some t

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages