Question

Define

i. Investment Banker

j.Financial intermediary

k. “Securities and Exchange Commission” (SEC).

m. Required Performance n. Capital Assets Pricing Model (CAPM)

Answer 1

i. Investment banker: An investment banker can be defined as a person who works in investment banks and helps the organization in raising money through banks, financial institutions and also assist in helping organization in getting listed on stock exchange and raise money through Initial Public Offering (IPO)

J. Financial Intermediary: A financial intermediary can be defined as a party that holds money from lenders in order to lend them to the borrowers. Examples are banks, investment banks etc.

k. " Securities and Exchange Commission" (SEC) : It is an agency based in US that protect investors by making company's listed on exchange to make full and accurate financial disclosures regarding their financial performance.

m. Required Performance: It can be defined as a minimum level of performance that the organization expects from the employees working in the organization. It can deviate from actual performance

n. The Capital Asset Pricing Model (CAPM): The Capital Asset Pricing Model (CAPM) is a model that describes the relationship between the expected return and risk of investing in a security. The below is the formula for CAPM model:

= Rf + Beta (Rm - Rf)

Where Rf = Risk Free Rate

Rm = Return on Market

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