Explain the term Modigliani–Modigliani measure
Explain the term Modigliani–Modigliani measure.
Expert
Modigliani–Modigliani measure: This is also called M2 measure is a simple linear transformation of the Sharp ratio:
M2 = r + v × Sharpe
Here v is the standard deviation of returns of the relevant benchmark. It is easily interpreted as the return you would expect by your portfolio is this was deleveraged to have similar volatility like the benchmark.
the criteria for a good international financial or monetary system
Elaborate the statement: Coefficient of variation is a better risk calculator to use than the standard deviation when estimating the risk of capital budgeting projects.
Explain Girsanov’s Theorem in briefly.
Who introduced equity option formula for pricing interest rate options?
Calculate a cross-rate matrix for the French franc, Japanese yen, German mark, and the British pound. Use the most current European term quotes to compute the cross-rates so that the triangular matrix result is alike to the portion above the diagonal .The cross-rate formul
How are foreign exchange transactions among international banks settled?The interbank market is network of correspondent banking relationships, along with large commercial banks maintaining demand deposit accounts along with one another, known a
Suppose current settlement price on a CME DM futures contract is $0.6080/DM. You contain a long position in futures contract. Presently your margin account contain a balance of $1,700. The next three days' settlement prices are $0.6066, $0.6073, & $0.598
Explain the experiment of Oldrich Vasicek of short-term interest rate.
When you add random numbers and get normal, what occurs when you multiply them?
Illustrates example of Brownian motion?
18,76,764
1925506 Asked
3,689
Active Tutors
1412641
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!