Category: Business
Created by: SingleWriter
Number of Blossarys: 3
The seventh assumption of capital market theory states that there is no inflation. This assumption allows investors to make a pure return since the real return of investors remains the return that ...
The eighth and the last assumption of capital market theory states and actually reinforces the fact that markets work in an efficient manner and due to this efficiency the instruments in the market ...
Dollar return is a sum of return that investors gets from dividends and from capital gain which is influenced by the change in market value of an asset or an investment. It is calculated by taking a ...
This is the return that an investor gets after holding his investment for a certain number of years, let's say 'n' years. Each year's return is calculated separately and then summed up together to ...
Risk cannot really be defined by a fixed definition or formula but one can certainly calculate it to get a good idea about its implications. One way to do it is by calculating the standard deviation ...
Risk premium is basically the excess that an investor earns over the risk free rate by investing in a risky asset or stock. It is considered as a reward for the investor who is willing to take a ...
Standard deviation is a tool that is used to determine how volatile an investment is. Some analysts also call it historical volatility since it predicts future volatility by looking at historical ...