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

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

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

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

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Q. Why are short-term debt funds considered a good option for stable and higher returns?

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Q. What is a key consideration for investors in Fixed Maturity Plans (FMPs)?

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