Treasury Bills are providing annual return or Risk free return 7%
On 6/1/11, mc100405363 Muhammad Irfan <mc100405363@vu.edu.pk> wrote:
> any 1 from gujarkhan
> mcs student
> contact at
> heloirfan@yahoo.com
>
> On 6/1/11, Humaira <mc100403601@vu.edu.pk> wrote:
>> *Question # 3*
>> In stock market XYZ company is offering 16% annual return on bonds,
>> however,
>> Treasury Bills are providing 7% annual return. Calculate the risk premium
>> if
>> an investor invest in XYZ company.
>>
>> *Solution:*
>>
>> Risk premium = Expected return on risky investment - Risk free investment
>>
>> plz elaborate it.
>>
>> hum konsi cheez ko kahan rakahain gay formula main?
>>
>> concept bhi explain kar dain. plz
>>
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>
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