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Unformatted text preview: where existing securities are traded. The capital market can be contrasted with other financial markets such as the money market which deals in short term liquid assets, and derivatives markets which deals in derivative contracts. Both the private and the public sectors provide market makers in the capital markets. While security market line is the linear relationship between the expected return of seurity and its systematic risk, the expected return comparing a risk-free return plus a risk premium....
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This note was uploaded on 06/01/2011 for the course FIN 3026W taught by Professor Drtoerien during the Summer '09 term at University of Cape Town.
- Summer '09