What is Behavioral Finance and why can it cause such a great effect in overall finance and investing activities?

Q: What types of decisions do people in finance make?

A: Finance people in the company take decisions with the aim that the outcome of the decision is…

Q: Explain in detail the role of Money Market with respect to financial market?

A: Financial market is a market where the financial instruments can be traded. Financial market can be…

Q: Financial management techniques?

A: Financial management is a very important aspect because it helps firms in various areas like funds…

Q: What are the major risks faced by financial institutions?

A: MAJOR RISKS FACED BY FINANCIAL INSTITUTIONS ARE : 1. INTEREST RATE RISK  2. CREDIT RISK 3. LIQUIDITY…

Q: ance.perhaps you have come across behavior or aspect of financial market that you think can be…

A: Introduction : In simple words, behavioral finance refers to the study branch of finance which deals…

Q: As a student, what do you think will be the positive effects of having knowledge to financial…

A: Possessing a good understanding and knowledge of the financial markets can help individuals and…

Q: Explain to me more about the topic of "EVOLUTION OF FINANCE"?

A: The evolution of finance can be categorized into three different categories    1. Traditional phase…

Q: What are the opportunities brought about by Financial Technology with respect to the goals of…

A: Financial technology is an innovation and technology used to aim at competing along with the…

Q: What is signalling Theory in finance

A: Signalling theory is nothing but based on the assumption that information is not equally available…

Q: Discuss the concept of finance and money from the perspective of a consumer and an investor.

A: Money is a concept that is very difficult to interpret or define in exact terms. Money can be…

Q: Why is corporate finance important to stakeholders?

A: Corporate finance generally deals with the sources of funding i.e the entity's capital structure. It…

Q: What is the basic function of a financial market?

A: Financial markets are a type of marketplace, by the name itself that gives a road to the selling and…

Q: What are annuities, growing annuities, perpetuities and growing perpetuities. What are the…

A: Annuity is a sequence of equal payments that take place over a fixed number of periods. Payments…

Q: What is the best way to participate in the financial markets

A: In the financial market, the term refers to the market where buyers and sellers meet to transact to…

Q: What is financial markets?

A: Answer: Usually, market is a place where buying and selling of goods and services take place.

Q: why do so few papers combine the fields of sociology and finance, especially when studying social…

A: Sociology deals in studying the social lie of humans, social causes, changes, and consequences, in…

Q: What do you mean by non quantifable factors ? (Corporate Finance)

A: Quantifiable factors in corporate finance refer to the financial numbers that defines the company’s…

Q: what is financial market?  Explain its functions.

A: Financial markets are the marketplaces where financial instruments, securities, and derivatives are…

Q: What does the term "financial market" refer to exactly? Explanation of how it works

A: Introduction: Financial markets are very important to economic progress and national development.

Q: what are corporate finance?

A: Corporate Finance:Corporate finance is a part of finance which deals with the investment, financing,…

Q: Expain why corporate finance is important to stakeholders?

A: Stakeholders - This term includes persons or organisations that may affect by the decision of…

Q: what is the difference between investing and financing activities?

A: Cash flow statement include cash flows resulting from operating activities, investing activities and…

Q: ial Markets he

A: Help of financial markets : For the both private and public sector enterprises, the financial market…

Q: What is Financial Modeling in Corporate Finance?

A: Corporate Finance talks about financial items of a corporation. It majorly discuss about the sources…

Q: Which type of financial market is more prevalent: direct finance vs indirect finance. What are the…

A: Financial markets are the places and medium through which the trading (purchase and sell) of…

Q: What do you mean by financial standpoint? (Corporate Finance)

A: The term finance has a broader scope which is used by the company in terms of money or capital. In…

Q: How do you think financial institutions help financial market to work?

A: fInancial institutions -The firms and organizations involved in the collection and distribution of…

Q: Why are financial markets and financial institutions important?

A: Financial markets: It is the market that are used for trading financial securities at a low costs.…

Q: Corporate finance] Why do you think decision trees are a useful tool for making investment…

A: Introduction : A decision tree can be defined as the decision-making aid that employs a tree-like…

Q: What is financial market?

A: Finance is the management activities that are related to money. It includes the activities like…

Q: What is behavioral finance?

A: Behavioral finance: It is a sub-field of behavioral financial matters, shows that psychological and…

Q: How does investment bank make money?

A: An investment is a large company providing financial services and that act as intermediary in…

Q: financial institutions im

A: Introduction : In simple words, financial institutions refers to the entities that are engaged in…

Q: Stockholder wealth maximization is the ultimate goal of financial management. Why? Explain the role…

A: Wealth maximization : In simple words, wealth maximization refers to the process in which the…

Q: market

A: Financial markets refer to markets where securities trading takes place. Securities that are traded…

Q: What is the fundamental function of financial markets?

A: The market where both buyer and seller interact in order to buy and selling of various financial…

Q: To what extent does Money Market contribute to financial markets, and how

A: INTRODUCTION : Traders in financial instruments may participate in the market. It is possible to…

Q: What are some other investment banking activities?How did these increase investment banks’ risk?

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: What is the role of financial institutions?

A: A financial institution (FI) is a firm that deals with financial and monetary activities such as…

Q: Why are financial intermediaries a bigger and more important source of funds for investors than…

A: There are a lot of functions a financial intermediary generally performs . The most important is the…

Q: What are the concepts of finance and money from the perspective of investors and consumers?

A: Solution- Consumer Finance Perspective-  A client continuously needs to meet his desires with…

Q: What is the major contr

A: Stephen Ross : Stephen M. Ross has been a well known real estate agent, philanthropist, as well as…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.