Risk – Causes, Systematic & Unsystematic Risk, Types

Risk – It refers to the degree or probability of loss in the future. Causes of Risk Wrong decision or Wrong timing Term of Investment – Long term investments are more risky than short-term investments as future is uncertain. Level of Investment – Higher the quantum of investment the higher is the risk. Nature of Industry – Risk is higher […]

Read more

Capital Budgeting & Various techniques of Capital Budgeting

According to G.C. Lyrich “Capital budgeting is concerned with the allocation of firm`s financial resources among the available opportunities.  The consideration of investment opportunities involves the comparison of the expected future streams of earnings from a project with the immediate and subsequent streams of earnings from a project, with the immediate and subsequent streams of expenditure.”  It is simply long […]

Read more