case 1--------------------Ms. Aqeela is the CEO of a Future Solution Construction Company who engages in financial market since she has a brother who is a well-known financial broker. She is being updated by her brother about the current stock prices, and whose companies are doing good. She has installed in her phone an exchange rate program so she can also monitor the exchange rates of currencies. Some banks are now issuing NCD’s (Negotiable Certificate of Deposits) which are offering good rates. Gold derivative is also being offered in the market. As a CEO, Aqeela enjoys the credit card which becomes usable during her travels abroad. During her travels she learned a lot and discover many things like in Bangladesh she met professional people who belong in a group which benefitted their members and the profit that the organization received were return to members in a form of dividend and patronage refund. In USA she visited one organization that widen her knowledge about fixed mortgages which takes deposits from small customers and use the deposit to make loans to borrowers.
Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
case 1--------------------Ms. Aqeela is the CEO of a Future Solution Construction Company who engages in financial market since she has a brother who is a well-known financial broker.
She is being updated by her brother about the current stock prices, and whose companies are doing good.
She has installed in her phone an exchange rate program so she can also monitor the exchange rates of currencies.
Some banks are now issuing NCD’s (Negotiable Certificate of Deposits) which are offering good rates. Gold derivative is also being offered in the market.
As a CEO, Aqeela enjoys the credit card which becomes usable during her travels abroad.
During her travels she learned a lot and discover many things like in Bangladesh she met professional people who belong in a group which benefitted
their members and the profit that the organization received were return to members in a form of dividend and patronage refund.
In USA she visited one organization that widen her knowledge about fixed mortgages which takes deposits from small customers and use the deposit to make loans to borrowers.
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