What is Modern Portfolio Theory
What is Modern Portfolio Theory?
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In 1952 the Modern Portfolio Theory (MPT) of Harry Markowitz introduced the analysis of portfolios of investments by in view of the expected return and risk of individual assets and crucially, their inter-relationship as measured by correlation. Previous to this investors would study investments individually, increase portfolios of favoured stocks, and not see how they associated to each other. In Modern Portfolio Theory diversi?cation plays an significant role.
From books of Aggarwal Bors, following information has been extracted: Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax
Explain Weak-form deficiency in Efficient Markets Hypothesis.
If a convertible bond has a conversion ratio of 20, a coupon rate of 8 percent, a face value of $1,000 and the market price for the company’s stock is $15 per share, what is the convertible bond’s conversion value?
What is a Wiener Process/Brownian Motion?
Explain the important properties of Brownian motion.
Define market for foreign exchange.Broadly described, the foreign exchange (FX) market encompasses the conversion of purchasing power from one currency to another, bank deposits of foreign currency, the extension of credit denominated in a forei
What is super hedging?
Explain total assets equal the sum of total liabilities and equity.
Explain the experiment of Oldrich Vasicek of short-term interest rate.
How is volatility associated to the standard deviation of the underlying’ return?
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