CIMR (LOGO) Research Project “A comprehensive Study of Indian Derivatives Market” Submitted To: Submitted By: Miss Payal Goyal In partial fulfillment of the Requirements For The Degree of Master of Business Administration ACKNOWLEDGMENT Privilege is what I feel expressing my sincere respect to my guide‚ adviser and well-wisher Prof. ………. faculty of CIMR ‚ Indore. Apart from his technical guidance
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why these kinds of patterns exist in security returns. However‚ some of the assumptions can be used in explaining this scenario. First of all‚ Monday depicts negative return due to its high volatility. Based on the empirical studies‚ Monday has high standard deviation of return‚ which means high volatility. This shows that trading in the market on Monday possess high risk‚ thus investors are not interested to trade on Monday. As a result‚ share price falls and this brings negative mean return.
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The Capital Asset Pricing Model (CAPM): What Is It? How Does It Work? And Does It Work Effectively? In 1960‚ a doctoral candidate in economics at the University of California‚ Los Angeles by the name of William F. Sharpe needed a dissertation topic. After reading a 1952 paper on portfolio theory by Harry Markowitz entitled Portfolio Selection‚ Sharpe had found his idea. Markowitz ’s paper presented the notion of an "efficient frontier" of optimal investment that advocated a diversified portfolio
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the observed volatility in financial and commodity markets is testimony to the inherent risks firms face. Financial risk management is the discipline that aims to analyse‚ control‚ and if necessary reduce those risks to an acceptable level. Therefore‚ financial risk management is the practice of creating economic value in a firm by using financial instruments to manage exposure to risk‚ particularly credit risk and market risk. Other types include Foreign exchange‚ Shape‚ Volatility‚ Sector‚ Liquidity
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systems. This paper empirically analyzes the role of cooperative banks in financial stability. Contrary to some suggestions in the literature‚ we find that cooperative banks are more stable than commercial banks. This finding is due to the lower volatility of the cooperative banks’ returns‚ which more than offsets their lower profitability and capitalization. This is most likely due to cooperative banks’ ability to use customer surplus as a cushion in weaker periods. We also find that in systems with
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Volatility is defined as the tendency or ability of a material to change from a liquid state to a gaseous state. This property is extremely important since the combustion process takes place in a gaseous environment‚ inside the engine‚ where the gasoline must first vaporize so that combustion can occur. Gasoline contains hundreds of compounds‚ each having a boiling point that interferes with the others when mixed. The volatility of gasoline compositions is determined based on the properties of Reid
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are concerned. If firms have high earnings volatility‚ for some obvious reasons‚ they would not want to indulge in debt financing. It follows that when firms are exposed to bankruptcy and agency costs greater is the incentive to reduce the level of debt otherwise the more volatile a firm`s earnings are‚ the more risk is there of defaulting and being exposed to such costs. As stated by Viviani(2008) firms that have high operating risk can lower the volatility of the net profit by reducing the level of
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in the rate of exchange between these two currencies creates differences in asset values and future depreciation that results in deferred tax for the full difference between the said values. The current world economy is characterized by very high volatility among currencies‚ which is significant even during such a short time as one calendar quarter. It is common for the deferred taxes that result from this functional currency issue to have a significant effect on the P&L in both directions in several
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MANAGEMENT BACKGROUND With the demise of the foreign currency exchange rates during the 1970’s and after the collapse of the Bretton Woods Agreement‚ the world economy has undergone drastic changes. This has signaled an increase in currency market volatility and trading opportunity. The foreign exchange market has played a vital role in the last decade or so in guiding the purchase and sale of goods‚ services and raw materials globally. The market directly affects each country’s bond‚ equities‚ private
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2011 FRM® Examination AIM Statements 2011 Financial Risk Manager (FRM®) Examination AIM Statements Topic Outline‚ Readings‚ Test Weightings The Study Guide sets forth primary topics and subtopics under the five risk-related disciplines covered in the FRM exam. The topics were selected by the FRM Committee as topics that risk managers who work in practice today have to master. The topics are reviewed yearly to ensure the FRM exam is kept timely and relevant. Readings Questions for the FRM
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