Pure Time Value of Money

IB, SAPM Concept

The knol will have brief introduction to the concept, links to various knols on the concept, books on the concept and research papers on the concept. Knol is on open collaboration basis, so that visitors and authors can add their knols and research papers and update and enrich the knol on a continuous basis

Authors

• Narayana Rao

Published

Creative Commons Attribution-Share Alike 3.0 License

Version 2

Last edited: 11 Feb 2009

Exported: 26 Nov 2011

Original URL: http://knol.google.com/k/-/-/2utb2lsm2k7a/970

Index of concepts

1. Aa to Az   2. Ba to Bz   3. Ca to Cz   4. Da to Dz     5. Ea to Ez   6. Fa to Fz   7. Ga to Gz   8. Ha to Hz   9. Ia to Iz 10. Ja to Jz 11. Ka to Kz 12. La to Lz 13. Ma to Mz 14. Na to Nz 15. Oa to Oz 16. Pa to Pz 17. Qa to Qz 18. Ra to Rz 19. Sa to Sz 20. Ta to Tz 21. Ua to Uz 22. Va to Vz 23. Wa to Wz 24. Xa to Xz 25. Ya to Yz 26. Za to Zz

Subject

Chapter/Topic

_______________________________________________________________

 

Concept Definition and Explanation

 

Rate of return on a security consists of three components.

 

1. Pure time value of money

2. Inflation premium

3. Risk premium

 

Pure time value of money is the interest rate demanded by an investor for postponing his consumption and making available capital to a borrrower.

 

If the lender anticipates inflation during the term of loan he demands an extra return to compensate for the loss in purchase power of money.

 

Risk premium arises due to uncertainty of interest and principal repayment.

 

 

References:

Reilly, Frank and Keith Brown, Investment Analysis and Portfolio Management, 7th Edition, Thomson-South Western, 2003

_____________________________________________________________________________

Knols

XYZ

 

 

Related Knols

 

XYZ

______________________________________________________________________________

Books

 

XYZ

 

______________________________________________________________________________

Research Papers

 

XYZ

_______________________________________________________________________________

Concept Articles

 

XYZ

_________________________________________________________________________________________________________

 

 

 

 

Related Article Directories

 

Security Analysis Article Series – Directory   Investment Banking Article Directory - KVSSNRao   Portfolio Analysis and Management Articles Directory

Comments

google gold : the best money you can imagine

imagine A
A (B..) is our google gold unit .
you can buy it for 5 whuffies .
you only need to write your name behind it .
the first to do this, is the owner .
http://knol.google.com/k/kalle-schwarz/google-gold-auction/1m7f8ad2dgh39/349#
A-auction was closed today (2010-09-30) .
tomorrow B-auction will start .
request you all to become co-owners and contribute.
request all authors to add their names in the appropriate section.
we will have better whuffie interaction and will be able to interact better on knol money group .

Kalle Schwarz - 01 Nov 2010

B-auction was closed on 2010-10-31 .
C-auction will start on 2010-11-01 .

Kalle Schwarz - 01 Nov 2010