What is capital asset pricing model?

Capital asset pricing model will allow you to split the total risk that is associated with the security into proportions. One of the proportion remains after diversification and the other may be diversified away. The risk which remains even after diversification is a relevant risk for appraising investment.

Initially substantial reduction of risks takes place, but with more and more diversification, the risk reduction slows down and eventually it stops at a point.

With capital asset pricing model, you can clearly detect the risk that is involved with the security you are providing. The risk that can be eliminated using the capital asset pricing model is termed as non systematic risk. The non systematic risk in fact affects the returns on your investment in a very unique way.

Investors are mainly worried about the systematic risk which affects the complete return on the investment. Now the problem is how to calculate the amount of systematic risk. Capital asset pricing model measure the systematic risk taking in to account two base points- the market portfolio and the risk free security.

What is merchant banking?

Any business is it small or big can’t grow properly without the required capital. But getting access to that amount of capital can be very painful at times. It is out of this necessity that the merchant banks were born. Though initially the merchant banks came in to being to fulfill the banking needs of the business, but with time they also included consultancy services on finance, marketing, management, legal issues, etc.

The merchant banks help the businesses in a lot of ways. During the beginning they help the business with the initial capital required to start the business. When the business is looking for expansion, the merchant banks also come to the help either with capital or with valuable suggestions.

You can also get advice from banks on how to modernize your business and what would be the affect of modernization on the progress of your business. You can also contact the bank in case of any sort of legal help.

How to check income tax return status online

If you are willing to know the income tax return status of yours, you don’t have wait for the official letter from the income tax department. You can now very easily check it online from the official website of the income tax department.
At time of registering on the online portal of the income tax department you have to furnish certain details. Based on those details, you are provided with a user id and a password. You can very easily log in to the website using the user id and the password and check the recent updates and the status. As soon as you enter the website, you will see different tabs and sections for different information.

You have to search for the section declaring the income tax return status. You may have to furnish different details like your PAN number to check the return status. Once you have furnished all the details and entered the right section, you will get information of your income tax return.