What is the relationship between the efficient portfolio and the feasible portfolio?

Q: What is Sharpe ratio? Show the link between Sharpe ratio and best efficient portfolio.

A: Sharpe ratio was developed by William F. Sharpe so that investors can analyze the returns earned…

Q: main investment in an optimal portfolio

A: Optimal portfolio helps to minimize the risk for a give rate of return or its helps to maximize  the…

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: Describe how a risk-free portfolio can be created using stocks and options. How cansuch a portfolio…

A: Risk-free portfolio can be created by purchasing stock of the company and buying the put option on…

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 required rate of return on a portfolio

A: Introduction: Required rate of return is nothing but the minimum rate that an investor would…

Q: What is an infeasible portfolio?

A: Portfolio:Portfolio refers to the collection or bunch of investment tools such as:StocksMutual…

Q: In what circumstances would you use one of the available risk measurements used in Modern Portfolio…

A: Modern portfolio theory refers to the theory of investment that allows the investors for…

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: how to calculate the variance of a portfolio

A: Portfolio variance : Portfolio variance can be defined as the measurement of dispersion of a…

Q: Briefly explain on elements of Modern Portfolio Theory.

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

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: What are the pitfalls of project and portfolio?

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

Q: Conceptually, how does an investor choose his or her optimal portfolio?

A: The point where any of the ‘indifference curve’ are tangent to the efficient set of portfolios is…

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: 1. What are some fixed-income portfolio benchmarks available and why are they used?

A: Market-capitalization-weighted indices like Citigroup World Government Bond Index and Barclays…

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 the constrained portfolio method or portfolio optiomatization? Why would an investor prefer…

A: Diversified portfolio- It refers to a portfolio of investments in which unsystematic risk or firm…

Q: The amount invested is one of the required inputs in a portfolio optimization model. True or False

A: Portfolio optimization is the process where the best portfolio out of many is chosen based on the…

Q: Why would an investor prefer a constrained portfolio optimization approach?

A: Portfolio optimization is nothing but a system in which a shareholder provides the correct advice on…

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: Identify and explain the various types of financial instruments used in optimal risky portfolio…

A: Optimal risky portfolio: The Optimal Risky Portfolio is the portfolio on the efficient frontier with…

Q: does modern portfolio theory works?

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

Q: In terms of the Markowitz portfolio model, explain how an investor identifies his / her optimal…

A: The question is based on the concept of modern portfolio theory (MPT) and approach. MPT explains the…

Q: How can you justify applying the top-down approach in a diversifyed portfolio?

A: A well diversified portfolio is one which is efficient to minimize the company specific risk by…

Q: Describe how a risk-free hedge portfolio can be created usingstocks and options

A: Hedging: The transaction that deceases the risk of the firm that can take place due to fluctuations…

Q: Explain why we construct a zero-cost portfolio when constructing factors.

A: A zero-cost strategy does not entail any additional expense to execute or costs a business or…

Q: Which of these examples demonstrate portfolio income? (Select all that apply.)

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

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: Explain the impact and significance Separation Theorem has when chosing the optimal portfolio.

A: Fisher's separation theorem states that the primary goal of any corporation is to increase its…

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: What is the standard deviation of their portfolio?

A: Standard deviation in simple words mean volatility. So the standard deviation of portfolio means the…

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: What is a philosophy on hedging investment for multicurrency portfolios.

A: Multicurrency portfolios are those where in a portfolio that consist of currency investments of…

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…

Q: Which statement about portfolio diversification is correct?

A: A portfolio is a combination of more than a stock or security. It is said to be diversified when the…

Q: How much it is important to note that unlike the mean HPR for the portfolio?

A: Introduction: Holding period returns (HPRs): Holding period return (HPR) is one of the investment…

Q: Define efficient portfolio

A: Portfolio refer as an investment in a group of financial assets such as stocks, bonds and any other…

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.