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 exc...
MBA NOTES:MASTER IN BUSINESS ADMINISTRATION (MBA) OR BUSINESS NOTES