he following table contains data on market advances and declines: Market Advances and Declines Day Advances (in millions) Declines (in millions) 1 906 704 2 653 986 3 721 789 4 503 968 5 497 1,095 6 970 702 7 1,002 609 8 903 722 9 850 748 10 766 766 Required: a. Calculate cumulative breadth. (Enter your answers in millions. Negative values should be indicated by a minus sign.) b. Is this technical signal bearish or bullish?
Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
The following table contains data on market advances and declines:
| Market Advances and Declines | ||
| Day | Advances (in millions) |
Declines (in millions) |
|---|---|---|
| 1 | 906 | 704 |
| 2 | 653 | 986 |
| 3 | 721 | 789 |
| 4 | 503 | 968 |
| 5 | 497 | 1,095 |
| 6 | 970 | 702 |
| 7 | 1,002 | 609 |
| 8 | 903 | 722 |
| 9 | 850 | 748 |
| 10 | 766 | 766 |
Required:
a. Calculate cumulative breadth. (Enter your answers in millions. Negative values should be indicated by a minus sign.)
b. Is this technical signal bearish or bullish?
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