What is the portfolio investment concept?

Q: What is investment timing option?

A: Option with reference to investment or project refers a significant option that can affect the…

Q: What is the Capital Asset Pricing Model (CAPM)?What are the assumptions that underlie themodel?

A: The CAPM is an equilibrium model which stipulates the association among required rates of return and…

Q: Explain the Opportunistic Investing strategies?

A: Opportunistic investing strategies are strategies that involve investment in highly risky…

Q: How do an investment's required rate of return vary with perceived risk? Explain with an example?

A: Required rate of return refers to the rate which the investors expects from their investments. This…

Q: Give the arguments for active portfolio management

A: An active portfolio manager is an investor that buys and sells stocks in order to outperform a…

Q: What is an efficient portfolio?

A: Introduction: An efficient portfolio is one that delivers the highest anticipated return at a given…

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: Define the term investment pool?

A: Answer: Investment pools are noting but an institutional entities that are pooled investment…

Q: Can someone give an example of Tangency portfolio?

A: The portfolio comprises of various securities or financial instruments available in the market for…

Q: What are investment returns?

A: Investment returns are a performance measure used to evaluate a speculation’s adequacy or to think…

Q: What is the total investment approach?

A: Total Investment Approach: In the Total Investment Approach, there is a risk-return tradeoff in the…

Q: Briefly explain on elements of Modern Portfolio Theory.

A: Modern portfolio theory brings correlation between risk and return for investors.

Q: What is the y risk-free investment?

A: Risk-free rate of return is the rate of return that an investor expects from an investment in any…

Q: What are the pitfalls of project and portfolio?

A: Project portfolio analytics are the tools, algorithms, and heuristics necessary to evaluate…

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 investor-supplied capital?

A: A business might make a return on its invested capital that surpasses the cost of that capital.

Q: what are the benefits of combining Projects into a Portfolio?

A: A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash…

Q: Describe the concept applied to the creation of an investment project portfolio?

A: The question is based on the concept of creation of portfolio for investment , which is combination…

Q: Explain the investment pool?

A: Investment Pool: Investment Pool is the joint funds that is planned financial arrangements for a…

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: What are the characteristics of equity investment?

A:

Q: Illustrate the method of investment risk: Investment?

A: Following are the methods of investment risk: Investment: Standard deviation: Standard deviation…

Q: What do you mean by rate of return on the investment?

A: What do you mean by rate of return on the investment?

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 the initial investment plus interest?

A: The total of initial investment and interest will give the total value or worth of the investment…

Q: does modern portfolio theory works?

A: MPT or Modern Portfolio Theory is defined as the mathematical framework regarding an assemble of the…

Q: Describe the Investment-Pool Concept?

A: Investment pools are institutional elements that are pooled speculation structures, with the…

Q: Explain portfolio weight

A: SOLUTION:- Portfolio is a group of financial assets or investments, such as stocks, bonds, and cash.…

Q: What is the relationship of risk to the investment?

A: There is a direct relationship between risk and return in investment decision making. It means…

Q: What problems occur in (portfolio management)?

A: In the simplest terms, a portfolio is termed as the combination of various financial investments.…

Q: Define market portfolio

A: A pool of investments that comprises of all the available investment opportunities across the globe…

Q: What is the capital asset pricing model (CAPM)? What are the assumptions that underlie the model?

A: Capital Asset Pricing Model is the most common security pricing model used in Finance. It is…

Q: What is investment strategy?

A: Investment strategies are generally used by the investors in order to protect themselves from any…

Q: What it the profitability index for investment project O?

A: Profitability Index = Present Value of cash flows / Initial investment  =$102,500 / $95,000 =1.079

Q: Explain risks in Portfolio?

A: Introduction: Risk is nothing but a potential for emergence of unexpected occurrences. There is…

Q: What is market portfolio?

A: A pool of investments that comprises of all the available investment opportunities across the globe…

Q: What is meant by an investment project’s internal rate of return? How is the internal rate of return…

A:

Q: What is return on investment?

A: Return on investment  is a financial ratio which is measured as net income divided by the cost of…

Q: Describe the investment analysis?

A: Investment analysis is defined as the process of evaluating an investment for income, risk, and…

Q: What does “investment risk” mean?

A: Risk is referred as uncertainty or loss. Financial risk is referred as the variability of actual…

Q: why do we need to quantify the investment risk and returns?

A: Almost all investments possess certain risks and return.

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.