Swathi (Student) (66 Points)
16 April 2012Dear frnds,
Having a query reg the over and under vln of stocks..
1.what is the difference between Required rate of return and Expected return with respect to securities in CAPM?
2.what is the criteria for deciding over or under valuation of securities?
monu
(nil)
(276 Points)
Replied 16 April 2012
generally words r correlated with each other.
but in deciding the overvaluation of stock we compare capm return with actual return if actual return is more than req. capm return than stock is under valued and vice a versa
in absence of actual return we compare it with the expected retirn
dikraduni
(trader)
(27 Points)
Replied 18 April 2012
Usually these two words are related with each other very much. at the time of deciding the overvaluation of stock that we can compare capm return with actual return if actual return is more than req. capm return than stock is under valued and vice a versa. in absence of actual return we compare it with the expected retirn
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Swathi
(Student)
(66 Points)
Replied 18 April 2012
thank u so much ur replies..
i want to know how is the actual return calculated and what does it really show abt the security
Ramalingam K
(Founder & Director - Holistic Investment Planners (P) Limited)
(21077 Points)
Replied 05 May 2014
There are so many Portfolio Management Schemes in the industry. So it is really very difficult to choose a good Portfolio Management Scheme provider. Here are some factors to be considered before choosing a Portfolio Management Scheme.
https://www.holisticinvestment.in/index.php?q=Best-Portfolio-Management-Scheme
Regards
Ramalingam K, MBA, CFP,
Director and Chief Financial Planner,
Holistic Investment Planners
“Best Performing Financial Advisor Award” Winners from CNBC TV18
CAclubindia
