What does Security Market Line Capture?

Q: How can the use of passwords actually circumvent security? What actions can be taken to minimize…

A: A password is a combination of letters (eg. a, b, E, etc.), numbers (eg. 1,4,7, etc.) or symbols…

Q: what is an available-for-sale security?

A: Securities are financial instruments that can be traded easily. The entities use these securities to…

Q: Define asset-backed security

A: Answer: Asset backed security is nothing but a security is made up of other financial securities.…

Q: What is meant by a dilutive security?

A: Dilutive security is a type of investment security that helps the company increase its equity…

Q: What is the over-the-counter (OTC) market?

A: Types of Over-the-Counter Market: Inter-Dealer Markets: The different dealers conduct…

Q: How is EDI more than technology? What unique control problems may it pose?

A:

Q: What is a derivative security?

A: Financial Instruments: It represents assets that are traded in the financial markets and are…

Q: Risk management focuses on what?

A: Organizations assess the stakeholder’s responses as risks or opportunities which would affect the…

Q: What is keystroke monitoring?

A:

Q: what is control risk

A:

Q: What is over-the-counter (OTC) trade?

A: It is an electronic communications network which permits the investors to sell and buy the stocks.…

Q: What is the Security Market Line (SML) ?

A: Answer: A security market line (SML) is a line that representing the relationship between systematic…

Q: What are the basic risk faced by financiwl intermediaries?

A: When two parties are transacting together and one person or entity is making the transaction easier…

Q: Explain what is risk decompositon

A: Risk is referred as the future uncertainty with reference to the deviation from an expected earnings…

Q: Explain Prepayment Patterns and Security Prices?

A: The lending process is subjected o interest rates changes which may trigger prepayment of the…

Q: What is the value of the security market line?

A: Security Market Line: The graphical representation of Capital Asset Pricing Model is known as…

Q: Explain types of Security Issuers and Guarantors?

A: Types of security issuers are described as follows: Banks– Banks generally issue securities to meet…

Q: What is event risk?

A: Event risk is the likelihood of a sudden event adversely affecting an organization, industry, or…

Q: Explain Derivative security?

A: Derivatives security: A derivative security is considered as a financial instrument whose value is…

Q: What is perfect hedge?

A: Hedge: A hedge is referred as an investment to decrease the risk of opposing price movements in an…

Q: How can passwords actually circumvent security? What actions can be taken to minimize this?

A: Password:   A password can be defined as a series of characters which can be used to determine the…

Q: How are the characteristics of an organized security exchange differ from an over the counter…

A: Financial markets contain any marketplace where securities such as the stock market, bond market,…

Q: What is risk and give examples

A: While making investment decisions risk and return should be taken into consideration.

Q: How does public key encryption work?

A:

Q: Critically explain, including the use of a graph, the security market line (SML).

A: The Security Market Line (SML) is the graphical representation of capital asset pricing model (CAPM)…

Q: What are some tests of physical security controls?

A:

Q: What is liquidity (security)?

A: Introduction: Liquidity is associated to rapid access to cash. Persons hold assets or security, and…

Q: What do "threat," "vulnerability," and "risk" really mean?

A: Threat : A declaration of purpose to cause someone pain, harm, damage, or other hostile action as…

Q: What are the differences between bottom-up and top-down approaches to security valuation? What are…

A: A top-down method to security evaluation starts with an examination of the worldwide and national…

Q: State difference between sureties and security?

A: In development contracts, if a worker for hire neglects to play out the works, the business would…

Q: Define Security Market Line (SML

A: When the cost of equity obtained from CAPM model is graphically presented, it is known as Security…

Q: Define convertible security

A: A convertible security is a security that can be changed into another form of investment. The most…

Q: How is cryptocurrency created?

A: Currency is the mode or method of the exchange of goods and services in an economy. The currency of…

Q: (a) Which of X, Y, and Z is a risk-free security when considered on a standalone basis?

A: Portfolio is the collection of securities or investments. The return on portfolio is the weighted…

Q: Why is sanctions compliance important?

A: Financial institutions are the institutions or organizations which act as the intermediaries of the…

Q: what is the risk-free rate (rf)?

A: Risk free rate is also called as treasury bill rate. This treasury bill rates are free from default…

Q: What is a “convertible security”?

A: Securities: Securities refers to a negotiable financial instrument that holds some type of monetary…

Q: What is negotiated deals (security offerings)?

A: Negotiated deals are usually referred to in the context of fixed-income securities. The parties…

Q: Define security instrument (or trust receipt)

A: A trust receipt is a notification of the release of goods from a bank to a purchaser, with the bank…

Q: Given the information in the following table, what is the expected return of the security?

A: Expected Return: It refers to the amount of gain/loss anticipated by the investor on an investment.…

Types of Money Market Instruments