Critically explain, including the use of a graph, the security market line (SML).

Q: what is an available-for-sale security?

A: Securities are financial instruments that can be traded easily. The entities use these securities to…

Q: Define the term Enterprise Risk Management.

A: Enterprise Risk Management (ERM) is a business plan designed to recognize, evaluate, and organize…

Q: Describe briefly how the HST remittance is calculated.

A: Harmonized sales tax remittance: The harmonized sales tax remittance is the amount of sales tax that…

Q: Explain what is meant by information risk, and give at least two (2) causes of this risk.

A: Information risk reflects the possibility that the information upon which the business risk decision…

Q: Define asset-backed security

A: Answer: Asset backed security is nothing but a security is made up of other financial securities.…

Q: Explain the concept of the world beta of a security

A: World beta is the measure of the volatility of returns of a stock or portfolio to the world stock…

Q: Define stand-alone risk

A: Stand-alone risk:This refers to the risk linked with a single aspect of a firm or any particular…

Q: Explain risk arbitrage

A: It is a venture system to benefit from the narrowing of a hole of the exchanging cost of an…

Q: Briefly describe the connection and the difference between CAPM and Single Index Model (SIM).

A: Capital Asset Pricing Model or CAPM referred to as the relationship between the systematic risk and…

Q: Risk management focuses on what?

A: Organizations assess the stakeholder’s responses as risks or opportunities which would affect the…

Q: What is the Security Market Line (SML) ?

A: Answer: A security market line (SML) is a line that representing the relationship between systematic…

Q: Should managers estimate intrinsic values or leave that to outside security analysts?Explain.

A: Intrinsic value of a stock is perceived value of a stock using analysis of book values of the…

Q: Define brokerage firm

A: Brokerage is the charges that are paid by the client to the broker who helped in buying and selling…

Q: Explain what is risk decompositon

A: Risk is referred as the future uncertainty with reference to the deviation from an expected earnings…

Q: Explain Prepayment Patterns and Security Prices?

A: The lending process is subjected o interest rates changes which may trigger prepayment of the…

Q: Define within-firm risk

A: Within-firm risk: Corporate (within-firm) risk is a hazard identified with an individual business.…

Q: Define Risk in general

A: In finance, risk is defined as the level of vulnerability that potentially creates financial loss…

Q: What is the value of the security market line?

A: Security Market Line: The graphical representation of Capital Asset Pricing Model is known as…

Q: Explain the basic characteristics of distributed ledger technology and some of its possible…

A: Here is the Answer for the basic characteristics of distributed ledger technology and some of its…

Q: Explain types of Security Issuers and Guarantors?

A: Types of security issuers are described as follows: Banks– Banks generally issue securities to meet…

Q: Explain replicating portfolio

A: A pool comprising of various stocks, financial assets, currencies, and bonds, closed or mutual funds…

Q: what steps  should follow to creat a cryptocurency

A: Cryptocurrency money is one of the words you can't keep away from nowadays. Miss this fad now and…

Q: Describe Detection Risk.

A: Risk: It is the uncertainty about the future events of the company. The adverse chances of choosing…

Q: Define risk in an electronic commerce setting.

A: E-Commerce:   E-Commerce also refers to electronic commerce or internet commerce where buying and…

Q: What can be understood from the term algorithmic trading?

A: Trading refers to the act of buying and selling of the commodities in the open market either within…

Q: Discuss and explain the sub-processes of risk management

A: Risk management refers to those processes and steps which a finance manager undertakes to reduce the…

Q: What is a trend analysis, and what information does it provide?

A: Trend analysis is the widely used concept in the financial markets to predict the movement of the…

Q: Discuss various types of security and non- security financing.

A: Step 1   Security is a financial instrument, usually any tradable financial asset. The definition of…

Q: An introduction write up for a risk management.

A: What exactly is risk management?"Risk management" assists an organization in identifying,…

Q: o and you are planning to add a single security to that security you are adding is relevant, The…

A: Portfolio refers to the combination of financial investments like bonds, stocks, cash, etc., and…

Q: Define automated trading platform

A: The automated trading system as the name indicates requires some computer software & linked…

Q: Explain the accounting for hedges.

A: Hedge:   A hedge refers to a financial instrument that are used by investors to offset the potential…

Q: Define Security Market Line (SML

A: When the cost of equity obtained from CAPM model is graphically presented, it is known as Security…

Q: Define convertible security

A: A convertible security is a security that can be changed into another form of investment. The most…

Q: How is cryptocurrency created?

A: Currency is the mode or method of the exchange of goods and services in an economy. The currency of…

Q: describe the use of the results of the accounting process in security analysis.

A: Financial statements provide the basis for equity and credit analysis. However, analysts must make…

Q: Define a risk event.

A: Risk Event:  When an event can cause losses to the company's stakeholders and investors due to…

Q: What does Security Market Line Capture?

A: Security market line (SML) is a straight line sloping upward depicting an expected rate of return as…

Q: Explain the concept of risk management

A: Introduction: Risk can be characterized in terms of the uncertainty of future consequences resulting…

Q: Define security instrument (or trust receipt)

A: A trust receipt is a notification of the release of goods from a bank to a purchaser, with the bank…

Q: Given the information in the following table, what is the expected return of the security?

A: Expected Return: It refers to the amount of gain/loss anticipated by the investor on an investment.…

Q: which of the following tabs in PORT allow you to view your portfolio's overall current performance…

A: Answer is given in next step.