NISM 21B Portfolio Managers Exam Notes

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  • Nominal Risk-Free Rate: Real rate plus expected inflation.
  • Risk Premium: Extra return for uncertainty in cash flows.
  • Risk Definition: Variability in actual vs. expected returns.
  • Business Risk: Volatility from operational factors, e.g., sales fluctuations.
  • Financial Risk: Increased volatility from debt financing.

NISM 21B Portfolio Managers

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