When it comes to investment performance, what statistical notion do many portfolio managers employ to reflect risk

Q: what is risk and return in the context of financial decision making?

A: Risk and return are two very important concept used in any financial decision making. Two financial…

Q: Describe Asset/Liability Models and explain why it is better than Value-at-Risk Models for Portfolio…

A: The process through the use of assets and liabilities are managed in such a way that the risk of…

Q: Two important assumptions of portfolio theory are: a) returns from investments are normally…

A: The portfolio theory seems to be an investment framework that enables investors to select from a…

Q: Identify and critically discuss the role of beta coefficient as used in the capital asset pricing…

A: The beta (β) of the underlying security is a assessment of its volatility as compared to the market…

Q: What roles, if any, do an investor's personal characteristics play in determining portfolio policy?

A: An investor is a person or any organization who contributes the money in investments such as debt,…

Q: e market is efficient, what is the role of an active portfolio manager? would active portfolio…

A: ACTIVE PORTFOLIO MANAGEMENT: Active management (also known as active investing) is a portfolio…

Q: How does the creation of a portfolio reduce risk? What type of assets should be included in a…

A: Introduction Portfolio: Any combination of financial assets, such as stocks, bonds, and currency, is…

Q: What is meant by excessive portfolio turnover? Which behavioral bias is primarily responsible for…

A: Portfolio turnover is a measure of how quickly the management of a fund buy or sell shares over a…

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: As a future manager, how will you make use of your knowledge in the computation of the relationship…

A: Risk is the possibility of something which may cause an adverse of desired result. Risk includes…

Q: Explain Systematic (market risk) and Business-specific risk. Can diversification of the portfolio…

A: Systematic risk: The risk associated to the whole segment of the market is called as systematic…

Q: Describe its significance along with the characteristics that determine the quality of a market?

A: A financial market is a market where people buy or sell financial securities at a low transaction…

Q: Which is risk in the context of financial decision making and performance? Does performance…

A: Risk in the perspective of financial decision making and performance differs as the company faces…

Q: Explain the relationship between risk and return in portfolio management!

A: Risk refers to an adverse possibility of something to get happen. Risk is the possibility of loss.…

Q: Why the advantage of Portfolio analysis is it stimulates the use of externally oriented data to…

A: Portfolio analysis is defined as the study of an investment portfolio, which will also be a process…

Q: Why is it preferred to have assets with negatively correlated returns in a well-diversified…

A: Correlation means degree to which two variance move in coordination of each other.  Correlation is…

Q: What is the expected return on a portfolio? How can the expected return on a portfolio be…

A:

Q: What is the main goal of the financial manager? How does the risk return trade-off relate to the…

A: For a given level of risk, there is a level of return. When the return from an investment rises,…

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: Why do an investor need to know and understand Portfolio Management and how do they handle their…

A: Portfolio management is the process of selecting, prioritizing, and controlling an organization's…

Q: What does it mean that portfolio diversification can reduce risk, and how does the efficient…

A: Risk is the measurable probability of loss on an investment. It includes the possibility of losing…

Q: Examine (i) the relation between market returns and investor sentiment, and (ii) the relation…

A: the relationship between the market returns investor sentiment and conditional volatility is stated…

Q: Market timers focus onusing overall market trends as a basis for predicting when to buy or sell…

A: Fundamental Analysis deals with analysing the financial statements and reports of the company. It…

Q: Describe how a portfolio manager may help to mitigate the impact of these risks on portfolio.

A: Portfolio manager is the individual or the group of people who is professional in his field,…

Q: How does the risk return trade-off relate to the financial manager's main goal?

A: The main goal for a financial manager is to generate the maximum value of the firm to its owners.…

Q: How We use quantitative data to manage risk and create investment vehicles

A: We can define risk as the variations in return. While investing in a security, it is very important…

Q: Explain what is the criterion used by a rational investor for choosing a financial investment in…

A:

Q: Whats the difference between a price momentum strategy and an earnings momentum strategy. Under what…

A: In order to receiving better returns after specific period of time, investors plan to invest first.…

Q: How can a firm’s managers influence market risk as reflectedin beta?

A: Beta:  It is the measurement of volatility of a stock compared to the market movements. A stock with…

Q: Why does Portfolio analysis stimulates the use of externally oriented data to supplement…

A: Portfolio analysis involves the analysis of the different portfolios and then selecting the best…

Q: What is attribution analysis and how can it be used to distinguish between a portfolio manager"s…

A: A portfolio is the combination or group of various investments of an investor that are placed in one…

Q: Why does the advantage of Portfolio analysis it stimulates the use of externally oriented data to…

A: Portfolio analysis refers to the one of the step in portfolio management where investor determines…

Q: Write about one of the problems that occur in (portfolio management), then explain it and provide…

A: Portfolio management :         Any investor wants to invest in various types of securities and…

Q: What are some qualitative factors that analysts should consider when evaluating acompany’s likely…

A: Qualitative factors are the factors which are non quantifiable for the examination of operations and…

Q: How important is risk to returns and what are the key elements that must be analyzed in this regard…

A: Risk: The Cambridge dictionary gives one of the meanings of the word "risk" as:  "to do something…

Q: What is the relationship between risk and return in (portfolio management)

A: Portfolio management involves prioritization, selection and control of the projects and programmes…

Q: Which are the different assets that have the potential to be combined efficiently in a portfolio…

A: The efficient frontier graphically represents portfolios that maximize returns for the risk assumed.…

Q: why can  variance/volatility of returns be a misleading measure of risk for an individual asset held…

A: The portfolio reflects a combination of assets which will provide with the benefit of elimination of…

Q: What is the relationship between financial decision-making and risk and return? Would all financial…

A: Almost every financial decision involves a risk-reward trade-off of some type. The higher the…

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

A: Almost all investments possess certain risks and return.

Q: a) Give the arguments for active portfolio management. b)What are the reasons which cause investors…

A: As you have asked question with multiple parts , we will solve the first 3 parts as per the policy…

Q: Why are statistical approaches and tools important in investment decision-making?

A: This question explains about the statistical approaches and tools that are important in investment…