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RISK AND ITS TYPES

Risk:

Fluctuation on return is called risk

Return:

Extra amount received on your amount, two components of return

Return = yield + capital gain

yield= earning through intrest or dividend   it can be positive (+ve) or zero

capital gain= sales price - purchase price   it can be (+ve , -ve or zero)

Types of Risk


  • Interest Rate Risk
  • Market Risk
  • Liquidity Risk
  • Country Risk
  • Exchane Rate Risk
  • Financial Risk

Interest Rate Risk:
The risk face by the investor due to the fluctuation in interest rate is called interest rate risk.

Market Risk:
The risk face by the investor due to fluctuation in the prices of securities.

Liquidity Risk:
The risk face by the investor on selling the securities.

Country Risk:
The risk face by the investor due to the political instability or another intenal factor of the country.
Example: country law situation.

Exchange Rate Risk:
The risk face by the investor due to the fluctuation in exchange rate is called exchange rate risk.

Financial Risk:
The risk face by the business due to the use of more debt as compare to equity in business.because the business have to pay more interest.



INVESTMENT AND PORTFOLIO MANAGEMENT
INVESTMENT VS SPECULATION AND GAMBLING
TYPES OF INVESTOR
INVESTMENT COMPANIES
TYPES OF MUTUAL FUNDS
TYPES OF BONDS FUNDS
MONEY MARKET FUNDS
SECURITIES MARKET
TYPES OF INDEX
TYPES OF BROKERS
BROKER'S ACCOUNT
MARGINAL ACCOUNT
ORDER AND ITS TYPES
RISK AND ITS TYPES
RETURN PORTFOLIO ANALYSIS
RISK PORTFOLIO ANALYSIS
RISK AND RETURN OF AN INDIVIDUAL SECURITIES
ANALYSIS OF COMMON STOCK VALUATION
CAPM MODEL (CAPITAL ASSET PRICING MODEL)
MARKOWITZ MODEL


MBA NOTES INVESTMENT AND PORTFOLIO MANAGEMENT
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