Explain alpha and beta in Capital Asset Pricing Model
Explain the purpose of alpha and beta in Capital Asset Pricing Model.
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The parameters alpha and beta are also commonly termed as in the hedge-fund world. Performance reports for trading strategies will frequently quote the alpha and beta of the strategy. This good strategy will have a high, positive alpha along with a beta close to zero. With beta being small you would suppose performance to be unrelated to the market as a complete and with large, positive alpha you would expect good returns either way the market was moving. The meaning of small beta a strategy should be a valuable addition to a portfolio due to its beneficial diversification.
Give an example of dynamic hedging.
How is Sortino Ratio Work?
Researchers found that this is very hard to forecast the future exchange rates more precisely than the forward exchange rate or the current spot exchange rate. How would you interpret this?This implies that exchange markets are informationally e
Assume that you inherited some money. A friend of yours is working as an unpaid intern at a local brokerage firm, and her boss is selling securities that call for 4 payments of $50 (1 payment at the end of each of the next 4 years) plus an extra payment of $1,000 at the end of Year 4. Your friend sa
Explain the term PGARCH as of the GARCH’s family.
From books of Aggarwal Bors, following information has been extracted: Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax
Explain the term complete market.
What is Co-integration?
What is an option price?
Tabulate the advantages of the flexible exchange rate regime. The advantages of the flexible exchange rate system comprise: (I) automatic attainment of balance of payments equilibrium and (ii) maintenance of national policy autonomy.
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