Required Rates of return are one of the key factors which influence an investment decision. Actually, Determinants of Required Rates of Return helps to calculate the required rates of return on investment. Sometimes the required rates of return are considered as the cost of capital/expected rates of return which basically used as a discounting or compounding factor. By using … [Read more...] about Determinants of Required Rates of Return
systematic risk
Is It Possible to Minimize Systematic Risk
You may have a question in your mind that is it possible to minimize systematic risk? If you have then I am right here with your answer. After reading this hope you will understand what actually systematic risk is, what are the factors related to this and is there any way to minimize systematic risk or not. Is It Possible to Minimize Systematic Risk? First of all, let me … [Read more...] about Is It Possible to Minimize Systematic Risk
Difference between Systematic and Unsystematic Risk
Difference between Systematic and Unsystematic Risk As an investor, you must know the difference between systematic and unsystematic risk because it will help you to take an effective investment decision. If you observer the investment decision of an investor, you can see that their investment decision is highly influenced by their risk-taking behavior. Although the future is … [Read more...] about Difference between Systematic and Unsystematic Risk
Basic Types of Risk
What are the Basic Types of Risk? We know that future is uncertain, because of uncertainty; involvement of risk can be traced to our every part of life. When we talk about any investment we have to think about risk and return, higher the risk higher the rates of return and lower the risk lower the rates of return. Our life is directly related with economic activities where … [Read more...] about Basic Types of Risk