a) Explain and distinguish between the terms: Financial gearing Optimal capital structure Financial gearing: Financial gearing is a percentage of debt capital in the company’s capital structure. If company has high gearing that means a company borrow a lot debt capital. (Main text book). Optimal capital structure: The optimal capital structure for a company is one which offers a balance between the ideal debt-to-equity range and minimizes the firm’s cost of capital. b) Explain why the
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TITLE PAGE…………………………………………………………………………….1 CONTENTS………………………………………………………………………………2 1. INTRODUCTION………………………………………………………………………..3 2. STOCKHOLDING………………………………………………………………………4 3. HOUSEHOLDS’ FINANCIAL MARKETS OVERVIEW………………………………6 4. MARKOWITZ PORTFOLIO THEORY…………………………………………………7 5. FACTORS THAT DETERMINE STOCKHOLDING DECISION OF HOUSEHOLDS .8 5.1 AGE 5.2 FINANCIAL STATUS 5.3 MARITAL STATUS 5.4 EDUCATION 5.5 GENDER 5.6 CULTURAL VALUES 6. REASONS WHY HOUSEHOLDS PARTICIPATE IN STOCKHOLDING………
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to form the portfolio combined two stocks TLS and ANN. By justifying five years (2005-2010) monthly data in using mean variance method to calculate the expected return (ANN 0.007488‚ TLS -0.004441)‚ standard deviation (ANN 0.076531‚ TLS 0.053729)‚ as well as beta (ANN 0.64‚ TLS 0.31). And then one year (2009) daily data to determine portfolio expected return in using CAPM method. With MV method‚ based on the justification and limitation‚ this report have not choose a optimize portfolio but only choose
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The following documents must be represented in your portfolio. The final drafts of these shall be printed out and collected in a folder prior to your presentation. ____ 1. Career Assessment/Career Essay and Resume Documents: 300 word essay and a completed Resume Students write an essay that explains their career path and the steps necessary to be competitive and marketable for their career of choice. Student creates a comprehensive academic and professional resume highlighting
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Pikulina Overview From Portfolio Theory to the CAPM Investment Theory The Capital Asset Pricing Model CAPM: Assumptions and Implications The CAPM Equation SML and CML Elena Pikulina Sauder School of Business University of British Columbia Beta and Alpha 1 / 29 General Overview Investment Theory Elena Pikulina Overview From Portfolio Theory to the CAPM CAPM: Assumptions and Implications The CAPM Equation SML and CML Beta and Alpha • In the previous lecture (Portfolio Theory) we studied how
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Resume` 3. Statement of Purpose 4. Organization of Portfolio 4. a Learning Observation 4. b The significant Students 4.c “Putting system makes one’s life easy.” 5. Personal Reflection 6. Comments of the Faculty 7. Rubric for the Portfolio 8. Students Self Relating Competency 9. Teachers
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Portfolio Management Strayer University 1.Analyze the relationship between risk and rate of return‚ and suggest how you would formulate a portfolio that will minimize risk and maximize rate of return. The relationship between risk and rate of return is risk determines expected rates of return on every existing asset investment. The Risk-Return relationship is characterized as being a "positive" or "direct" relationship. (Importance of risk
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HEC Paris Financial Markets Spring 2012 Final Exam “Cheat Sheet” 0. Basic Statistics (a) Consider an n-outcome probability space with probabilities p1 ‚ p2 ‚ . . . ‚ pn . Consider two discrete random variables X and Y with outcomes (X1 ‚ X2 ‚ . . . ‚ Xn ) and (Y1 ‚ Y2 ‚ . . . ‚ Yn ). 2 The we have the following formulas for means (µX ‚ µY )‚ variance (σX )‚ standard deviation (σX )‚ covariance (σX‚Y )‚ and correlation (ρX‚Y ) µX = EX = E(X) = p1 X1 + p2 X2 + · · · + pn Xn µY = EY = E(Y ) =
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Asset Pricing and Portfolio Analysis 33:390:410:01 Fall 2013 Lectures: M/W 1:40-3:00 BRR 5101 Office Hours: Wednesday s 3:15-4:15 & by appointment Professor Office: BRR 5139 Phone: Email: Please read the syllabus carefully since it presents the philosophy of the course‚ provides a broad outline of the issues‚ and discusses course requirements. Note that you are responsible for reading and understanding all course requirements. Course Description: This course
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to figure out the weights of assets A and B in the market portfolio: E[RA ] − RF E[RB ] − RF = σAM σBM E[RA ] − RF E[RB ] − RF ⇒ = 2 2 wA σA + (1 − wA )σAB wA σAB + (1 − wA )σB 0.021 − 0.02 0.05 − 0.02 ⇒ = . wA × 0.004389 + (1 − wA ) × (−0.00099) wA × (−0.00099) + (1 − wA )0.00594 1 This can be solved to obtain wA = 0.2118 and thus wB = 1 − wA = 0.7882. Expected return and standard deviation of the market portfolio are: E[RM ] = 0.2118 × 0.021 + 0.7882 × 0.05 = 0.04386 =
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