Investment Theory Elena Pikulina Overview From Portfolio Theory to the CAPM Investment Theory The Capital Asset Pricing Model CAPM: Assumptions and Implications The CAPM Equation SML and CML Elena Pikulina Sauder School of Business University of British Columbia Beta and Alpha 1 / 29 General Overview Investment Theory Elena Pikulina Overview From Portfolio Theory to the CAPM CAPM: Assumptions and Implications The CAPM Equation SML and CML Beta and Alpha • In the previous lecture (Portfolio
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produces the best possible outcome. This model deals with the estimation of securities as well as it links the risk and return (the expected shares). There is a direct relationship and risk and return provides higher expected return from that security. CAPM is considered the key model for helping in decision making regarding the selection of securities and also helps in planning the strategies. Types Of Risks – The unsystematic or the diversifiable risk is related to the haphazard causes which can be
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You observe that Nicholas had an abnormal return of -1.2% yesterday. This suggests that 8) Tracking error is defined as 9) IF a portfolio manager consistently obtains a high Sharpe ratio measure‚ the manager’s forecasting ability _____ 10) Active portfolio management consists of _____ 11) To improve future analyst forecasts using the statistical properties of past forecasts‚ a regression model can be fitted to past forecasts
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Maastricht University School of Business and Economics Maastricht‚ 15 September 2009 Table of Content Introduction 3 Summary Statistics 4 Spread Portfolio 5 Evaluate the CAPM 6 Conclusion 7 References 8 Introduction The Capital Asset Pricing Model (CAPM) is an equilibrium model that underlies all modern financial theory. It predicts the required rate of return of a security based on its risk‚ as measured by beta‚ and makes use of various simplifying assumptions
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for “Desert Song” performed by Edward Sharpe and The Magnetic Zeros opens‚ an impoverished yet innocent child is seen stranded in the desert. As the video draws a close‚ the little boy had been transformed into a troubled poor man who was clearly struggling to find his identity‚ resulting in his mental demise. The continuous rugged conditions forced upon Alex‚ the main character in the video‚ created a stressful environment‚ which defeated all hopes of Alex being rational. The video focuses on
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Cheryl Mew FINS2624 – Portfolio Management Semester 1‚ 2011 LECTURE 1 – BOND PRICING WHAT IS A BOND? A bond is a claim on some fixed future cash flows. A commonwealth government bond (CGB) is a bond which pays semi-annual coupons‚ in which the maturity date/ coupon payment date is on the 15th of every month. A zero coupon bond is a bond with no coupons. The important information of a bond: 1. 2. 3. 4. 5. 6. • 1. 2. Transaction date: T Settlement date:T+2 Coupon payment dates Maturity date
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The comparison of underlying assumptions and conclusions of the CAPM and the APT models Prepared by: Professor: Prague‚ 2013 Introduction This paper studies the characteristics and application of valuation models of financial assets CAMP and APT. The methodology of measuring financial assets emerged in the second half of the 20th century‚ the most effective in practice‚ are now pricing model of financial assets as a CAPM and its subsequent conversion APT. With the pricing model of
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iExaminers’ commentaries 2011 Examiners’ commentaries 2011 23 Investment management Important note This commentary reflects the examination and assessment arrangements for this course in the academic year 2010–11. The format and structure of the examination may change in future years‚ and any such changes will be publicised on the virtual learning environment (VLE). Specific comments on questions – Zone A Candidates should answer FOUR of the following EIGHT questions. All questions carry equal
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Portfolio Performance evaluation & Analysis Portfolio Management(F-407) Submitted to: Pallabi Siddiqua Assistant Professor Department of Finance Faculty of Business Studies University of Dhaka Submitted by: Gazi Afsana Roll: 15-252 4th year 2nd Semester Department of Finance Faculty of Business Studies University of Dhaka Date of submission: January 13‚ 2013. Letter of transmittal Date Mrs. Pollobi siddiqua Lecturer‚ Department Of Finance‚ University
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are able to see how the child’s poverty severely shaped his identity. After the scene of imagination with very vibrant colors‚ we see the child grown up‚ and he is now Alexander Ebert‚ however in the video he is the fictional character “Edward Sharpe”. Alex awakens to see another human near him and his instinctual decision was to murder him. As the blood oozed from they mysterious man’s throat‚ Alex’s mind alters the blood into flowers for his mental stability and sanity. If the child’s imagination
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