Sign in

CAPM Review

The CAPM model is based on specific assumptions. The investor could borrow or lend any amount of money at risk less rate of interest.

All investors hold only market Portfolio and the restless securities. Market portfolio consists of the investments in all securities of the market the proportion invested in IT security is equal to the percentage of the total market capitalisation represented by the security.

The capital market line represents the relationship between the expected return and standard deviation of the portfolio. The risk of the security is indicated by its covariance with the market portfolio.

Read More


mport and export

In comparison with domestic trade International train presents certain special problems:

1. Sellers in international trade are not able to assess the creditworthiness of the buyers as reliable and thoroughly as sellers in domestic trade

2. Transportation of goods is slower and less certain and communication less efficient and more time consuming.

3. Legal settlement process are complicated, tardy and expensive In order to cope with these problems, international trade relies considerable on three major documents on instruments that is trade draft, bill of lading, and letter of credit.

READ MORE

Trade draft: The international trade draft, also referred to…


leasing

A lease represents a contractual arrangement where by the lessor grants the lessee the right to use an asset in return for periodic lease rental payments.

Lease arrangements can be broadly divided into two categories:-

1. Operating

2. Financial leases

An operating lease is a short term lease which is not fully amortized. A financial lease, on the other hand, is a long term leaves which is fully amortized.

As there is no separate statue for equipment leasing in India, the provisions relating to bailment in the Indian contract Act govern equipment leasing agreements as well. …


Once an investment project is proposed, its cost and benefits must be estimated. This is usually done with the help of inputs provided by marketing, production, accounting and other departments. The role of the financial manager is to keep the exercise focused on relevant variables, co-ordinate efforts of various participants in this process and ensure that podcasts are reasonably balance and internally consistent. Usually the outcome of this process is the set of projections prepaid according to conventional Accounting principles. …


According to the Companies Act 1956 “ Debenture includes debenture stock, bonds and any other securities of company, brother constituting a charge on the assets of the company or not”. Debentures are generally issued by the private sector companies as a long term promissory note for raising loan capital. The company from sister to pay interest and principal as stipulated. Bond is an alternative form of debenture in India. Public sector companies and Financial institutions issue bonds.

Characteristic features of debentures

The main characteristics feature of debentures are listed below:

1. Form: it is given in the form of certificate of indebtedness by the company specifying the debt of redemption and interest rate.

2. Interest: the rate of interest is fixed at the time of issue pixel which is known as contractual or coupon rate of interest. Interest is paid as a percentage of the par value of the debenture and may be paid anually, semi-annually or quarterly. The company has the legal binding to pay the interest rate.

Read more https://managementera11.blogspot.com/2021/05/debenture.html

Types of debentures

Debentures are…


Debenture
According to the Companies Act 1956 " Debenture includes debenture stock, bonds and any other securities of company, brother constituting a charge on the assets of the company or not". Debentures are generally issued by the private sector companies as a long term promissory note for raising loan capital. The company from sister to pay interest and principal as stipulated. Bond is an alternative form of debenture in India. Public sector companies and Financial institutions issue bonds.

Characteristic features of debentures

The main characteristics feature of debentures are listed below:

1. Form: it is given in the form of…


Nevertheless, it should be remembered that none of the above questions can be answer in isolation. Each question has necessary to the answer in relation to others because of their interdependence.

For an effective decision making, the distinction between long term and short term is very important. Essentially, long term is planning for change by short term is adapting to change. This being the case, the resources of the former plant in the long-term to gain an advantage of changing opportunities. In the short term, on the other hand, the phones freedom of action is restricted as the output capacity…


Portfolio is a combination of securities such as stocks, bonds and money market instruments. The process of blending together the broad asset classes so as to obtain optimal return with minimum risk is called portfolio constructions. Diversification of investments helps to spread risk over many assets. A diversification of securities gives the assurance of obtaining the anticipated return on a portfolio. In a diversified portfolio, some securities may not perform as expected, but others may exceed the expectation and making the actual return of the portfolio reasonably close to the anticipated one. Keeping a Portfolio of single security many to…


In the modern competitive world, it is impossible to think of life without information. The whole world depends upon how quickly the information is conveyed from one person or place to another. To keep the system up to date, we need to gather information from various sources like newspaper, radio, magazines, televisions, internet etc.

The term information technology is widely used nowadays. It refers to the subjects related to creating, managing, processing and exchanging information. It defines an industry that uses computers, networking software programming, and other equipment and processes to store, process, retrieve, transmit and protection information.

In this…


Data mining is defined as extracting the information from the huge set of data and using it to make crucial business decisions. In other words we can say that mining is mining the knowledge from data that improves business efficiency.

Data mining brings a lot of benefits to businesses, society, governments as well as individual. However privacy, security and misuse of information are the big problems if they are not addressed and resolved properly.

Need of Data Mining

We need data mining mainly due to following reasons:

In field of information technology, we have huge amount of data available information…

Sweta

A content writer on management studies

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store