Compute betas against local indexes
Does it make any sense to compute betas against local indexes while a company has a great part of its operations outside such local market? I have two illustrations: BBVA and Santander.
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Both the betas computed against local indexes and also those calculated against international indexes are not very helpful, as we can notice from the following graphs that demonstrate the betas of Santander calculated along with everyday data throughout the past 5 years.
Sometimes, companies accuse investors of performing credit sales which they make their quotations fall. Is it true?
Regular meeting of day-to-day commitments: The estimation of WCR also helps to ensure that there is positive WC existence. This proves helpful in meeting requirements which are regular in nature such as payments of salaries, wages, rental charges etc.
Calculated betas give different information if they are acquired by using weekly, monthly or daily data.
The market risk premium is the difference between the historical return on the stock market and the return on bonds. But how many years does “historical” imply? Shall we use the arithmetic mean or the geometric one?
I want to know how much do you charge for doing the project?
Box Spread: This is another strategy which seeks to exploit the arbitrage opportunities which are available in the market. In case that the options are correctly priced, this strategy would earn only the risk free rate. However, due to existence of im
I do not know the meaning of Working Capital Requirements. I think this should be same to Working Capital (Current Assets – Current Liabilities). There am I right?
Part I Guidelines and requirements: The questions in Part I of this assignment are based on the materials covered in Units 1 and 2. Please write a short-ess
Explain the working of breakthrough in low-discrepancy sequences used for option valuation.
What are the Attributes of debt securities?
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