Relationship Between CAPM and EMH
The Capital Asset Pricing Model (CAPM) and the Efficient Market Hypothesis (EMH) are closely related concepts in finance that both […]
MEC 110
Monetary Policy Transmission Mechanism
What is Monetary Policy? Definition: Monetary policy refers to the actions and strategies employed by a central bank or monetary
Nominal and Real Interest Rates
Nominal and Real Interest Rates Nominal Interest Rate The nominal interest rate is the interest rate before adjusting for inflation.
Applying the Efficient Market Hypothesis (EMH) in Real Life
Applying the Efficient Market Hypothesis (EMH) in Real Life The Efficient Market Hypothesis (EMH) suggests that financial markets are “informationally
Efficient Market Hypothesis Explained: Key Concepts and Implications
Efficient Market Hypothesis The Efficient Market Hypothesis (EMH) is a theory in financial economics proposed by Eugene Fama. It suggests
Modigliani-Miller Theorem of Capital Structure: Explained
The Modigliani-Miller (MM) theorem, introduced by Franco Modigliani and Merton Miller in 1958, is a cornerstone of modern corporate finance theory. It asserts that in perfect markets, a firm’s capital structure—whether financed through debt or equity—does not affect its overall value. This theorem has deeply influenced the way companies think about financing decisions and the cost of capital.
Key Functions of Capital Markets and Their Impact on Economic Growth
The Role of Capital Markets in the Economy The capital market plays a crucial role in the economy by facilitating
Capital Asset Pricing Model (CAPM) Explained
Understanding the Capital Asset Pricing Model (CAPM): A Comprehensive Guide What is CAPM? The Capital Asset Pricing Model (CAPM) is