“company or industry specific risk” (Faulkenberry‚ 2012). Unlike systematic risk this type of risk can be “attributable or specific to the individual investment or small group of investments” (Faulkenberry‚ 2012). Unsystematic risk is also known as diversifiable risk or residual risk. Sources of this type of risk are employee strikes‚ the outcome of an unfavorable litigation‚ a natural catastrophe‚ credit or legal issues‚ etc. Diversification is a way that
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FIN221: Lecture 4 Notes Chapter 19 Portfolio Selection Chapter 19 Charles P. Jones‚ Investments: Analysis and Management‚ Eighth Edition‚ John Wiley & Sons Prepared by G.D. Koppenhaver‚ Iowa State University Portfolio Selection • Diversification is key to optimal risk management • Analysis required because of the infinite number of portfolios of risky assets • How should investors select the best risky portfolio? • How could riskless assets be used? Building a Portfolio • Step 1: Use
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portfolio weight. c. portfolio risk. d. rate of return. e. investment value. Difficulty level: Easy SYSTEMATIC RISK c 3. Risk that affects a large number of assets‚ each to a greater or lesser degree‚ is called _____ risk. a. idiosyncratic b. diversifiable c. systematic d. asset-specific e. total Difficulty level: Easy UNSYSTEMATIC RISK d 4. Risk that affects at most a small number of assets is called _____ risk. a. portfolio b. undiversifiable c. market d. unsystematic e. total Difficulty
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FIN413 – Practice Midterm Exam Fall 2012 Boris Nikolov William E. Simon Graduate School of Business Administration University of Rochester Name ______________________________ Please do not open exam until instructed to do so Exam is 2 hours This is a closed book exam One page of personal notes allowed Please do not sit in adjacent seats Please write only in the space provided for each question You need a pocket calculator
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FINA 4104: Advanced Financial Management Professor Xuewen Liu Department of Finance‚ HKUST Spring 2013 Email: Xuewenliu@ust.hk Office hour: 13:30-14:30 Tuesday Assessment: Assignments (12%)‚ Midterm-exam (18%)‚ Projects and presentations (15%)‚ and Final exam (55%) Textbooks: 1. Corporate Finance‚ by J. Beck and P. DeMarzo‚ 2nd edition 2011‚ Pearson Education‚ Inc. Hereafter BD. 2. Financial Markets and Corporate Strategy‚ by M. Grinblatt and S. Titman‚ 2nd edition‚ 2002‚ Irwin McGraw
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Finance Final Study Guide FIN 331 – Moser – Study Guide for Exam 1 – Spring 2011 Important Concepts * Forms of Business Organization * Proprietorship- an unincorporated business owned by one individual * Partnership- legal arrangement between two or more people who decide to do business together * Advantages * Ease of formation * Subject to few regulations * No corporate income taxes * Disadvantages * Limited life
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Final Project Ashford University Trena Mealor Dr. James Prentice August 27‚ 2012 Final Project Investing in the total stock market allows an investor to capture the return of the stock market while at the same time diversifying an investment portfolio. The easiest way to build a total stock market portfolio is with a mutual fund or an exchange traded fund. This particular portfolio is diversified with Vanguard ETF’s that were carefully chosen to seek the highest return with moderately aggressive
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Homework 2 Solution‚ Fin 500Q‚ Quantitative Risk Management 1. Assume gold price risk is diversifiable‚ and the riskless rate is 5%. A firm produces a unit of gold a year from today. Assume all interest is compounded annually and is tax deductible. The price of gold is either $500 or $200‚ each with probability 0.5. Suppose the firm pays taxes at a rate of 40% for all its cash flow in excess of $300. The value of the firm is the expected discounted value of its cash flow less the expected discounted value
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Financial Risk Management by Insurers Chris XXXXXX MBA 602 – Risk Managment Original Work Statement: I‚ Chris XXXXXX‚ verify that this article review is solely my own work and creation and it has been prepared solely for credit in this class. Article Citation: http://search.proquest.com.ezproxy.bellevue.edu/docview/235932288/13BC81292F940B27246/43?accountid=28125 Financial Risk Management by Insurers: An Analysis of the Process: ABSTRACT Santomero‚ Anthony
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User Codi A Eby Course BA 520: Financial Strat/Tech(68796-W15) Test Part 6 Quiz Started 1/16/15 3:25 PM Submitted 1/23/15 12:13 PM Status Completed Attempt Score 69 out of 75 points Time Elapsed 164 hours‚ 48 minutes. Instructions Question 1 3 out of 3 points The optimal distribution policy strikes that balance between current dividends and capital gains that maximizes the firm’s stock price. Correct Answer: True Question 2 3 out of 3 points The dividend irrelevance theory‚ proposed
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