The basic view and expectation of such a model is how investors investing in the market need to be rewarded. Which are; (1) Time value of money and (2) Risk. FORMULA: Explanation: The Time value of money by the risk-free (rf) rate in the formula and reimburses the investors for placing money in any investment over a period of time. The second part of the formula shown above describes or calculates risk and the total sum of reward the investors seek for taking extra risks. This is calculated by taking a risk measure (beta) that compares the returns of the asset to the market over a period of time and to the market premium (Rm-rf).
The buyer has the time they need to fix their credit from a previous foreclosure, pay the low cost of renting. Not only is the seller coming out on top, but past homeowners do not have to deal with the stigma of never owning a home again. Thanks to the decline in real estate, most people that are looking to sell their home are turning to rent-to-home options to as an avenue. Although there is a slight increase when it comes to people buying homes, it still has a ways to go. Who wants to rent a home that will never be theirs?
Interest Rate Swaps - International Financial Management Introduction Interest rate swaps are a financial instrument that firms use to hedge themselves against interest rate exposures by exchanging interest rate obligations with each other (Smith, 2011). Interest rate exposure is the risk that a firm can make financial losses when the interest rates on the firm’s liabilities/assets move unfavorably (upwards and downwards respectively) against it within the financial market. It also refers to the opportunity for gain when interest rates in the financial market drop on these very same liabilities. The rationale behind such a derivative instrument is that, both parties to the financial arrangement have their own distinct priorities and requirements
FUTURE CONTRACTS Definition: A future contract is a standardized, exchangeable, tradable contract between two parties to trade a specified asset on a certain date in the future at a specified price. Those who engage in future contracts can be termed as either the purchaser or the seller. The purchaser of the asset is called the long party because when the contract is settled, the individual will have much of the asset. On the other hand the seller of the asset is called the short party because after settling the contract, that person will have less of the asset that the previously owned. ADVANTAGES OF FUTURE CONTRACTS Hedging – This is where investors predict adverse changes in price of an asset and therefore helps them to curb the same.
Revenue is offset with all of the expenses incurred in generating that revenue, thus providing a measure of the overall profitability of the economic activity. The policy of recognizing revenue in the accounting records when it is earned and recognizing expenses when the related goods or services are used is called the accrual basis of accounting. The purpose of accrual accounting is to measure the profitability of the economic activities conducted during the accounting period. The revenue recognition principle states that a business must recognize revenue in its records in the period in which a sale occurs, even though the business may collect payment from the customer in a different period. The result is that a company’s reported revenue for a particular period typically differs from the cash it collects from customers during that
The person would need to reapply to get any future advantage. There is absolutely no better time than right now to make programs to make sure your family's financial security in case of your fatality with an inexpensive, term life policy. Term life is also known as "pure insurance" because its idea is simple: You pay reduced to an insurance provider in trade for their promises to pay a fatality profit to your survivors if you expire while the agreement continues to be in force.
The company can increased their rental income by upgrade, renovate or replace the property. The company will responsible for all the damage, management fee or any expenses regarding to the properties that use as the REITs properties. The investor or unit holder will gather the pool of money to the company. The unit holder is expected the dividend as the return for their investment. The company will
Mutual fund is both advantageous and disadvantageous as compared to direct investment made by an individual in individual securities. ULIP ULIP is also called unit linked insurance plans. They are long time investment plans the amount of premium paid by the investors is divided into 2 broad categories , the first amount is saved for the payment as the life cover and other part is invested in the investment , it may be invested in the debt equity(treasury bond and government securities) as per the investors preference in order to receive returns . If a person dies during the period of the policy, depending on the terms and conditions of the policy, the person will receive the sum assured or the value of the fund and such proceeds from the insurance company are tax free. Investors in ULIP are allotted with units by the insurance company and on daily basis, a net asset value (NAV) is declared for it...
For sure, renters insurance protects your belongings in the event of a fire, theft, or other unforeseen events. It covers damages to your possessions when you rent rather than own your home. Renters insurance typically provides coverage, up to the limits you select, for specified items and situations, including, personal properties like furniture, electronics, computer equipment, clothing, etc. It will also protect you from incidents that occur while you 're at home, such as a microwave catching on fire or a friend slipping and falling while visiting you. However, renters insurance can be tricky because it is relatively a new concept.
Custodian, who is registered with SEBI, holds the securities of various schemes of the fund in its custody. The trustees are vested with the general power of superintendence and direction over AMC. They monitor the performance and compliance of SEBI Regulations by the mutual fund. The performance of a particular scheme of a mutual fund is denoted by Net Asset Value (NAV). The advantages of investing in a Mutual Fund are: • Professional Management • Diversification • Convenient Administration • Return Potential • Low Costs • Liquidity • Transparency • Flexibility • Choice of schemes • Well regulated • Affordability • Variety • Tax benefits TYPES OF MUTUAL FUND SCHEMES Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk tolerance and return expectations etc.