Q: What is an efficient portfolio?
A: Introduction: An efficient portfolio is one that delivers the highest anticipated return at a given…
Q: (4) What is a replicating portfolio? What isarbitrage?
A: Replicating Portfolio It's a pool of assets generated for replicating the pool of liabilities' cash…
Q: What is the portfolio beta?
A: To calculate the portfolio beta we will multiply weight of each stock with beta of each stock.
Q: Example or scenario of market portfolio?
A: The question is based on the concept of market portfolio, which is a bundle of all the assets…
Q: What is the importance of portfolio management?
A: Portfolio management is the management of the risk and returns on the securities and the group of…
Q: What is an infeasible portfolio?
A: Portfolio:Portfolio refers to the collection or bunch of investment tools such as:StocksMutual…
Q: How does an efficient portfolio relate to a feasible portfolio?
A: PortfolioSets of assets are termed as a portfolio. A portfolio comprises the number of bonds,…
Q: Briefly explain on elements of Modern Portfolio Theory.
A: Modern portfolio theory brings correlation between risk and return for investors.
Q: How does risk affect interest rates?
A: The risk and the interest rates are in a direct relationship that is, the greater the risk the…
Q: What are the benefits and advantages of diversification for a portfolio?
A: Diversification of portfolio means allocating investments to different assets so that there is…
Q: Is it possible to construct a portfolio of real-world stocks that has a required return equalto the…
A: The theoretical rate of return for an investment with no risk is known as the risk-free rate of…
Q: What is a financial option? What is the singlemost important characteristic of an option?
A: Answer: A type of financial security that derives its value from the value of a particular…
Q: What is the required rate of return on the new portfolio?
A: Required return is the minimum return an investor will demand on the principal amount invested. It…
Q: Which are the Elements of Portfolio Theory?
A: Portfolio theory: The theory of portfolio is about risk and return. The investor is concerned…
Q: What is CAPM and how it used in portfolio management?
A: Risk and return are the two main parts of any investment and before investing in any security or…
Q: What is hedge portfolio?
A: Hedge portfolio It consists of the long position in a security i.e stock and also the long position…
Q: 2. What are the two types of fixed-income portfolio management strategies and why is each used?
A: The portfolio composed of securities resulting in the regular cash flows which will ultimately helps…
Q: how to calculate portfolio beta?
A: Beta is used while calculating the volatility of the investment. It measures the systematic risk of…
Q: What is the purpose of portfolio management?
A: A portfolio is a systematic method of selection of investment mix to get benefit with a limited risk…
Q: What is market risk?
A: Investments in assets are subject to risks and uncertainty of returns Risks can be systematic or…
Q: What is the relationship between the efficient portfolio and the feasible portfolio?
A: An efficient portfolio can be defined as portfolio which maximizes return for given level of risk or…
Q: Can the standard deviation of a portfolio be zero? Explain your answer.
A: Standard deviation of a portfolio measures the volatility of returns,i.e. how much the returns…
Q: What problems occur in (portfolio management)?
A: In the simplest terms, a portfolio is termed as the combination of various financial investments.…
Q: 4. What are the various types of risk intrinsic to fixed-income portfolios?
A: Fixed income portfolios include investments that provide periodic interest at a fixed rate. Fixed…
Q: Calculate Portfolio Returns with example?
A: The determination of profit or loss on the investment in a portfolio is called portfolio return. The…
Q: all methods used to optimize portfolio (FINANCE) from Modern portfolio theory (MPT)?
A: An investment is always evaluated on the basis of return and risks it offers. “Risk” and “return”…
Q: What is the portfolio's return?
A: The total investment returns produced on individual assets multiplied by the weight class of that…
Q: What is hedge fund?
A: Hedge funds are the type of funds that are established by the private investment partnership or…
Q: Discuss the advantages and disadvantages of options in the financial markets?
A: Options refer to a financial contract that gives the buyer the right and not the obligation to buy…
Q: Discuss the role of risk-free assets in the Markowitz Portfolio Theory.
A: Harry Markowitz always focused on lowering the risk and diversification in order to maximize the…
Q: What is the expected return on a portfolio v
A: The expected return on an investment refers to the weighted average of estimated returns and…
Q: Why are covariance and correlation concepts so important in portfolio analysis?
A: In portfolio theory covariance is important since the portfolio variance is a mixture of individual…
Q: Explain risks in Portfolio?
A: Introduction: Risk is nothing but a potential for emergence of unexpected occurrences. There is…
Q: What is financial futures?
A: Financial futures are the contracts that are used for the selling and purchasing of different types…
Q: What is market portfolio?
A: A pool of investments that comprises of all the available investment opportunities across the globe…
Q: What is futures market?
A: A market where both buyer and seller interact in order to buy and selling of futures contracts and…
Q: What is optimal portfolio?
A: One that minimises the risk for a given level of return or maximises the return for a given level of…
Q: Consider the following graph. According to Markowitz’ portfolio theory, which point on the graph…
A: Optimal portfolio is the portfolio having highest return for a given risk.
Q: Can someone explain and give an example of markowitz portfolio theory?
A: The question is based on the concept of Markowitz portfolio theory also called Modern portfolio…
does modern portfolio theory works?
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- How the risks could be diversified by using the portfolio theory?What is the relationship between the efficient portfolio and the feasible portfolio?In what circumstances would you use one of the available risk measurements used in Modern Portfolio Theory instead of another? What are the advantages and disadvantages of each?