Risk and Return: Portfolio Theory and Asset Pricing Models Portfolio Theory Capital Asset Pricing Model (CAPM) Efficient frontier Capital Market Line (CML) Security Market Line (SML) Beta calculation Arbitrage pricing theory Fama-French 3-factor model Portfolio Theory • Suppose Asset A has an expected return of 10 percent and a standard deviation of 20 percent. Asset B has an expected return of 16 percent and a standard deviation of 40 percent. If the correlation between A and B is 0.6
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Labelling theory is a means by which sociologists can attribute preconceptions (often false ones) about certain social groups. The idea behind the theory is that conformists will define which acts can be construed as ones of a “deviant”‚ and can then label a person as a deviant. This labelled “deviant” is then treated as one‚ and eventually begins to turn into one. This series of events is known as a “self-fulfilling prophecy”. Examples of labels placed upon members of society include: thief‚ criminal
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were aware of. His aim was always to create a psychological theory that applied to everybody. Nowadays Freud is known in psychology as the father of psychoanalysis. Freud’s psychodynamic theory focuses on both development and the unconscious mind which is where mental health problems are supposedly formed. Although this theory doesn’t apply to everyone‚ Freud followed it strongly when concerning his various case studies. In Freud’s theory he stated that there were three levels of consciousness‚ the
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theory has also proved as a valuable insight to the development of the serial killer as he demonstrated that children were able to adapt a violent personality by witnessing it. Interesting theories have been introduced in explaining the biogenic explanation of serial killers. Pasternack (1974) found that every killer he examined in prison had suffered head trauma‚ Ted Bundy‚ Henry Lee and some others were some examples (Holmes and Holmes‚ 1998). It has been said that psychomotor epilepsy and hormonal
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Explain ways in which risk is an integral part of everyday life Bates and Silberman’s ’Holy Grail’ Criteria. Bates and Silberman have described effective risk management as the "’holy grail’ of mental health and other care services" (2007 p6) They see it as finding an integrated balance between "positive risk taking" around the values of autonomy and independence and a policy of protection for the person and the community based on minimising harm. While they do not give an exact description
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I feel much honored to read the article "Deny the Consent to Be Governed: Risk Leadership Theory" which write by our school scholars Curtis Brungardt and C.B. Crawford. Different from other articles about leadership‚ I think their perspective is very special. They introduced the risk leadership from the perspective of the leadership development. Such a development vision I first think of the history of China‚ from the several thousand years of feudalism society to the socialist society‚ China has
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with no central location. A dealer market with no central location is referred to as an over-the-counter market. They are largely unregulated markets and each contract is with a counterparty‚ which may expose the owner of a derivative to default risk (when the counterparty does not honor their commitment). Some options trade in the over-the-counter market‚ notably bond options. LOS 1.b: Contrast forward commitments and contingent claims. A forward commitment is a legally binding promise to
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TABLE OF CONTENTS CONCEPTS OF RISK AND UNCERTAINTY 1 Definition Economic Risk Economic risk is the chance of loss because all possible outcomes and their associated probabilities are unknown.Actions taken in such a decision environment are purely speculative‚ such as the buy and sell decisions made by speculators in commodity‚ futures and option markets. All decision makers are equally likely to profit as well as to lose‚ luck is the sole determinant of success or failure. 2 Definition of
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Social unit of two or more persons related by blood‚ marriage‚ or adoption and having a shared commitment to the mutual relationship. http://www.businessdictionary.com/definition/family.html Different types of concepts are used in family theories. Some point to the structure of a family‚ its composition or the way it is organized. Some concepts describe patterns of social interaction‚ the quality of relationships‚ or processes that occur in families. Some theoretical concepts show how other concepts
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other hand in a friendship group‚ people don’t take on roles as much as it is less formal and when in a conversation there isn’t always a final goal that needs to be achieved. From my research I have found different theorists that all share common theories in effective group communication. One of the theorists that I looked at was Nicholson. He talks about why people join groups. The five things he talks about are people having the same stimulation‚ reassurance‚ attraction of similarity‚ proximity
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