Executive Summary Main differences of Zeus from its main competitor are its customer-oriented services‚ their core strategy of teamwork and they used municipal bond fund to purchase securities. Estimation of risk-adjusted returns is important to Zeus as In Zeus opinion‚ investors will not pay for the higher return generated by merely taking the higher risk. Investors demand Zeus to utilise professional skills to provide them with a return above the benchmark. There are also advantages and disadvantages
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ZEUS ASSET MANAGEMENT‚ INC. OVERVIEW Zeus Asset Management‚ Inc was considered one of the largest private investment-counselling firms in the Southeast with more than $1.7 billion in assets under management. The main job of Zeus is customizing portfolios according to their institutional and high-net-worth individual clients’ risk and return expectation. Additionally‚ Zeus had an array of mutual funds that gave opportunities for small investors to invest in diversified portfolios under professional
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Chapter 11 ___________________________ Stock Valuation and Risk 1. The common price-earnings valuation method applied the ______ price-earnings ratio to ________ earnings per share in order to value the firm’s stock. A) firm’s; industry B) firm’s; firm’s C) average industry; industry D) average industry; firm’s ANSWER: D 2. A firm is expected to generate earnings of $2.22 per share next year. The mean ratio of share price to expected earnings of competitors in
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Introduction CAPM has been an active area of research over the past half century since the introduction of Sharpe development of the capital asset pricing model. Much progress has been made in the early years on the linear relationship between expected return and beta(Black‚ Jensen and Scholes 1972 and Fama and MacBeth 1973). Later studies however show weak empirical evidence on these relationships. Since then‚ although extended versions of CAMP have been introduced such as CAPM with higher-order
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generally yield lower returns than riskier investments such as the stock market‚ it was only with the development of the Sharpe-Lintner capital asset pricing model (CAPM) that economists were able to quantify these differences in returns. By this research project we will understand how mutual fund manager work with this data. To understand how it works we will use basic CAPM model‚ after that Fama and French’s (1993) three-factor model and will add two addition factors: momentum factor and traded
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analysis of the Ghanaian mutual fund industry between the years 2006 and 2010. An exhaustive literature review on mutual funds and portfolio diversification will be conducted. An assessment of the performance of mutual funds will be done using the Sharpe and Sortino ratios as well as the Jensen Alpha. Comparisons will be made with analogous indices to determine the attractiveness of the industry. The investment strategy of fund managers will also be analysed and recommendations made. This paper will
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Will My Risk Parity Strategy Outperform? Robert M. Anderson∗ University of California at Berkeley Stephen W. Bianchi† University of California at Berkeley Lisa R. Goldberg‡ MSCI and University of California at Berkeley November 10‚ 2011§ Abstract We gauge the return-generating potential and risk inherent in four investment strategies: value weighted‚ fixed mix‚ and levered and unlevered risk parity‚ over an 85-year horizon. There are three essential conclusions from our study. First‚ even over periods
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ESTIMATING THE RISK PREMIUM USING HISTORICAL DATA: A CASE OF THE NSE Introduction This study seeks to estimate the risk premium of a company using historical data. Analysts use historical data to estimate the risk premium of a company’s equity. This is because the historical data is readily available from the company’s financial statements and the securities exchanges for example the Nairobi Stock Exchange (NSE) in Kenya. Historical market data can be used to compute average returns and a measure
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Reliance Growth Fund Appendix-IV(GRAPHICAL & TABULAR RESULTS)………76-100 Scheme Assets Latest NAV’s % of Net assets as on 30.09.2010 Sector Allocation (Tabular form) Sector Allocation (Graphical form) Monthly Net Asssts for Last 18 months Sharpe Ratio Beta Ratio Standerd Deviation Corelation Ratio Sortino Ratio FEMA French Three Factor Model Treynor Ratio P/B Ratio P/E Ratio Bibliography……………………………………………………….101 CERTIFICATE OF ORIGINALITY This is to certify
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Table of Contents pg. 2 3. Introduction/ Executive Summary pg. 3 4. Modern Portfolio Theory pg. 3 5. Portfolio Management pg. 4 6. Controlling the Risk pg. 5 7. Diversification pg. 6 8. CAPM pg. 7 9. Beta: Advantages and Disadvantages pg. 8 10. Options pg. 10 11. Hedging pg. 11 12. Net Present Value (NPV) pg. 12 13. Technical Indicators: pg. 14 14. Efficiency Frontier
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