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The CAPM implies that investors require a higher return to hold highly volatile securities?
The CAPM relates the expected return on a security to that of the overall market portfolio.
A highly volatile security will have a high covariance with the market portfolio. Since beta equals the covariance of the security with the market portfolio divided by the variance of the market portfolio, the result is a high value of beta.
When this high value of beta is plugged into the CAPM formula, all else not changed, the required return on the security (ra) is going to increase, implying investors require a higher return to hold a highly volatile security.
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What else can I help you with?
The belief that investors require a higher return to entice them into holding long-term securities is the viewpoint of the?
Market credit crunch theory
What annuity requires a securities license?
Variable annuities require a securities license to sell them.
What are non-marketable securities?
Non-marketable securities are financial instruments that cannot be easily bought or sold on public exchanges due to a lack of liquidity. Examples include private equity investments, certain bonds, and shares in privately held companies. These securities typically have restrictions on transferability and may require a long-term commitment from investors. As a result, they often carry higher risks but can also offer potential for higher returns.
What does the loan against shares mean?
Loan against Securities is a type of loan where securities like shares, Mutual Funds, term deposits, NSC certificates, etc. are used as collateral. While some banks might require your securities to be liquidated, others give you the option of taking a loan without liquidating your investments.
What are the potential risks associated with investing in high risk funds?
Investing in high-risk funds can lead to potential losses due to the volatile nature of these investments. There is a higher chance of losing money compared to more stable investments, and the value of the fund can fluctuate greatly. Additionally, high-risk funds may not be suitable for all investors, as they require a higher tolerance for risk and a longer investment horizon.
The belief that investors require a higher return to entice them into holding long-term securities is the viewpoint of the?
Market credit crunch theory
What annuity requires a securities license?
Variable annuities require a securities license to sell them.
What products require a securities license?
Variable annuities
What is a blue-sky law?
The blue-sky law is a therium that is consisted on the sky's elements. Such as gas and propane. Many belive that this law should be improved by also adding in water vapor. This is because there are clouds in the sky, whcich is made from water vapor. Hope I helped!:)
Who require more temperature for easily evaporation its volatile liquid or non volatile liquid?
Volatile liquids require less temperature for easy evaporation compared to non-volatile liquids. This is because volatile liquids have lower boiling points and higher vapor pressure, making them more likely to evaporate even at lower temperatures.
What is the difference between discount rate and coupon rate?
For this answer we have to know the six categories of premioum:a. Inflation premium(more risk): high inflation means tha investors will require a higher return in order to invest at a certain project.b. Maturity premium: the longer the duration of a project, the higher the return that investors will require.c. Liquidity premium: the excess return that investors will require in order to invest their capital in a less desirable project on a secondary market.d. Exchange rate risk premium: the excess return that investors will require in order to invest their capital in a foreign financial assets that has volatile exchange rate.e. default risk premium: .... in order to invest in a more (??) project to default companyf. Real rate of interests
What chip is a type of non volatile memory chip that does not require power to hold data?
sdram
What are unlisted investments?
Listed securities are those that have met the conditions to be listed on a stock exchange. U.S. exchanges, for instance, frequently require a minimum size and stock price as well as the timely filing of financial statements and other important information with the SEC. The stringency of these conditions varies from exchange to exchange. Unlisted securities, sometimes quoted on the OTC Bulletin Board or Pink Sheets, are considered significantly more risky than listed securities. They are not subject to any of the types of conditions mentioned above (though a subset may also be required to file financial statements with the SEC). Unlisted securities are always unsuitable for unsophisticated investors and most experienced investors avoid them. POOPY BUTT>>>>>>>>HAHAHAHAHAHAHAHA
What are locks keyless home securities?
They are doors that do not require a key to open, but instead they require a password. They are more sturdier than a wooden door, but becareful not to forget the password.
What are the educational requirements for securities brokers?
Even entry-level brokerage clerk positions often require a college degree. Also, to sell securities professionals are required to pass an examination testing their knowledge of investments.
What does happiness require?
I'm pretty sure unconditional love for yourself which implies a willingness to be happy.
What is the Minimum age to obtain series 6 securities license?
most security licenses require that you are at least 18 years of age
