7-1 a. A portfolio is made up of a group of individual assets held in combination. An asset that would be relatively risky if held in isolation may have little‚ or even no risk if held in a well-diversified portfolio. b. The feasible‚ or attainable‚ set represents all portfolios that can be constructed from a given set of stocks. This set is only efficient for part of its combinations. c. An efficient portfolio is that portfolio which provides the highest expected return for any degree of
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ISM Question 1 Explain various system design and development methodologies. Question 2 Write short notes on following: • Data Mining • IT Outsourcing Question 3 Differentiate between MIS and TPS [pic] http://www.authorstream.com/Presentation/mashkoor-883032-tps-transaction-processing-system/ http://books.google.co.in/books?id=D7UMstcSWkoC&pg=PR173&lpg=PR173&dq=list+of+differences+between+MIS+and+TPS&source=bl&ots=C2x_cS9fQz&sig=rmM2TuHnkzbPLer
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(10 points) Suppose CAPM works‚ and you know that the expected returns on Walmart and Amazon are estimated to be 12% and 10%‚ respectively. You have just calculated extremely reliable estimates of the betas of Walmart and Amazon to be 1.30 and 0.90‚ respectively. Given this data‚ what is a reasonable estimate of the risk-free rate (the return on a long-term government bond)? (Enter the answer with no more nor less than two decimal places‚ and leave off the % sign. For example‚ if your answer is 13
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Tracy Hsiao‚ Baltic Ocean Evaluation of AQR Momentum Funds Date: Dec. 5th‚ 201r Past performance of momentum strategies – CAPM & Fama‐French MOM 4 factors model In Table 1‚ we could evaluate the past performance of momentum strategy‚ Short Decile 1 and Long Decile 10‚ a.k.a. L/S (10‐1). Capital Asset Pricing Model (CAPM) E(R) = α + Rf + β (RM - Rf) + By applying to CAPM‚ we got a β that is almost zero (-0.08) showing the strategy could effectively diversify and reduce the market risk with stocks
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bróker online más barato y 100% confiable 3. El retorno de la inversión tiene que ser mayor al costo de capital 4. Reducción al costo de comisiones por operación de $29‚95 a $8.00 5. Cómo puede utilizarse el CAPM para estimar el costo de capital? El CAPM es igual al costo capital asociado a las empresas o al patrimonio de los accionistas Ks = Rf + b*(Km-Rf) 6. Cuál es la tasa libre de riesgo que debe tomarse? La tasa libre de riesgo a considerarse‚ es
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Dividend. (n.d.). Stock Dividend Data. Retrieved April 18‚ 2014‚ from Dividend: http://www.dividend.com/dividend-stocks/consumer-goods/beverages-soft-drinks/ko-coca-cola-co/#dividend-growth-history Investopedia. (n.d.). Capital Asset Pricing Model - CAPM. Retrieved from Investopedia: http://www.investopedia.com/terms/c/capm.asp Investopedia. (2104‚ April 18). Dividend Discount Model - DDM. Retrieved from Investopedia: http://www.investopedia.com/terms/d/ddm.asp Investopedia. (n.d.). Retun on Equity
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The risk-free rate is 1.5%‚ and the market risk premium is 5.0%. (a) What is next year’s projected dividend? The projected dividend D1 is D1 = D0 (1 + g) = $1.32 × 1.05 = $1.386 or $1.39 . 1 (1) (b) What is BP’s cost of equity capital based on the CAPM? The cost of equity capital rBP is rBP = rf + β [E(rm ) − rf ] = 1.5% + 0.87 [5.0%] = 1.5% + 4.35% = 5.85% .
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Zeus Asset Management Inc Executive Summary Zeus Asset Management Inc is an asset management firm with more than $1.7 billion in asset under management. Zeus is well known for relationship-oriented that served both individual and institutional investors with the investment philosophy of believing that they could get a superior return over the long run using a conservative‚ risk-averse and quality-oriented approach. Zeus have been measuring it’s return in an absolute basis however Abbott demanded
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Entrepreneurial finance assignment 1 Problem 4.4. Introduction The CAPM model can be used to analyze the performance of a portfolio of investments. The model should be calculated by comparing the return of assets (Ri) minus the return of risk-free cash (Rf) of the fund against those numbers of a known index with historical data (Rm). With least-squares regression‚ a straight line has to be drawn through the points to finish the model. Alpha represents the point where the graph starts and
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Abstract The purpose of this essay is to illustrate the complexity meanings of financial reporting reflect the reality and it can be the creator of social reality. Financial reporting should have an objective “truth” and “fair” view and prepare a faithful presentation for shareholders to deal with the investment. Accounting theory need to continuous change its standards or models in order to meet the future needs. This easy also discuss this statement which relate to the sustainability issues
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