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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

Q. What is one of the prime reasons for the historical popularity of bank Fixed Deposits (FDs)?

View solution

Q. What is the primary objective of Fixed Maturity Plans (FMPs)?

View solution

Q. How do Fixed Maturity Plans (FMPs) differ from traditional Fixed Deposits (FDs)?

View solution

Q. What is the tax treatment of Fixed Maturity Plans (FMPs)?

View solution