This article throws light upon the top five categories for classification of valuation models. The categories are: 1. One-Period Valuation Model 2. Two-Period Valuation Model 3. n-Period Valuation Model 4. Dividend Valuation Model 5. Earnings Capitalisation Model. Category # 1. One-Period Valuation Model: Suppose an investor plans to buy an equity share to hold it for one year and then [...]
After reading this article you will learn about the Valuation of Securities:- 1. Debenture Valuation 2. Share Valuation 3. Equity Share Valuation. Debenture Valuation: A bond is an instrument of debt issued by a business house or a government unit. The bonds may be issued at par, premium or discount. The par value is the amount stated on the face [...]
This article throws light upon the four main sections of risk and return relationship. The sections are: 1. Risk and Return of a Single Asset 2. Risk and Return of a Portfolio 3. Capital Asset Pricing Model (CAPM) 4. Arbitrage Pricing Theory. Section # 1. Risk and Return of a Single Asset: Return on Investment: Return from a venture is [...]