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Financial ConceptsTime Value of MoneyMoney has time value. A rupee today is more valuable than a rupee a year hence. This is because of the following reasons: Individuals, in general, prefer current consumption to future consumption.. Read Risk and Return Almost all investments carry risk and yield return. Usually, higher the risk higher the return, lower the risk lower the return. However, a general understanding of this phenomenon is not sufficient to make appropriate decisions relating to investments.. Read Valuation of Securities Under Construction.. Financial Statement Analysis Under Construction.. Foreign Exchange Management Under Construction.. Fund Flow Analysis Under Construction.. Capital Structure The CAPM establishes a relationship between risk and return. According to it, the expected return on a security is equal to the risk free return plus a product of the surplus return over the risk free rate and the risk (beta).. Read |
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