Important Points for IC 99 - Asset Management Exam
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The present or future value of cash flows is determined by using a discount rate. This discount rate is based on factors like rate of inflation, interest rate and risk premium.
It is a process of building a portfolio that involves making wide range of decisions regarding buying or selling of stocks, bonds, or other financial instruments.
Inflation is the term used to describe the rate at which prices for goods and services are rising.
Deflation is the term used to describe a general decline in prices.
A portfolio is a group or pool of financial assets such as shares, bonds, debt instruments, cash equivalents etc.
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