Therefore, the forward rate will exceed the expected short rate, i. They are statutorily required to maintain a certain portion of the deposits as cash and another portion in the form of liquid and safe assets generally Government securities , which yield a lower rate of return. It can only be for a limited number of years. The second component, called the asset turnover ratio, measures the efficiency in usage of assets by the firm and the third component measures the financial leverage of the firm through the equity multiplier. The real payoff is Rs.