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What is risk free rate of return
There is a 'risk free rate of return' (also known as time preference rate) which is used to compensate for the loss of not being able to invest at any other place. To it a 'risk premium' is added to compensate for uncertainty of receiving the cash flows.
Required rate of return = Risk free rate + Risk premium
Maturity Profile Even though there is no ideal theory/concept of the maturity of the instruments, some important issues that should be considered while balancing the long-term
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Working and function of stock exchange
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