Q. How is the Portfolio Expected Return (E(RP)) calculated in terms of individual securities?

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Q. How is Portfolio Risk measured in terms of the variance or standard deviation of its return?

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Q. What does the Capital Asset Pricing Model (CAPM) predict the relationship between?

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Q. What is the CAPM method primarily concerned with in terms of risk?

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Q. How are non-diversifiable risks assessed in the CAPM method?

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Q. What does the formula R = Rf + B (Rm - Rf) represent in the CAPM model?

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Q. What is one of the relevant assumptions of the Capital Asset Pricing Model (CAPM)?

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Q. What does the Security Market Line (SML) in CAPM represent?

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Q. According to the Arbitrage Pricing Theory Model, what are the four factors that explain the risk premium relationship of a particular security?

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Q. What does the upward-sloping line in the Security Market Line (SML) indicate?

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Q. What is the main advantage of the Arbitrage Pricing Theory Model?

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Q. When considering debt investments in portfolio management, what important factor should investors pay attention to?

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Q. What does default risk refer to in the context of debt instruments?

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Q. How does interest-rate risk affect bond prices and debt funds in portfolio management?

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Q. What is advisable when investing in longer-duration bonds in the context of interest-rate expectations?

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Q. How did bond yields and NAVs of debt funds react when the RBI did not hike interest rates as expected?

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Q. What is the lock-in period for the Public Provident Fund (PPF)?

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Q. What is a key advantage of tax-free bonds?

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Q. Why might investors consider moving higher up the risk ladder for fixed income investments?

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Q. What is a potential drawback of Company Fixed Deposits and NCDs?

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