Explain alpha and beta in Capital Asset Pricing Model
Explain the purpose of alpha and beta in Capital Asset Pricing Model.
Expert
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.
Explain Weak-form deficiency in Efficient Markets Hypothesis.
Explain Treasury bill and risk involved with it.
Elaborate: The increased common stock cash dividend can send a signal to the common stockholders.
Normal 0 false false
How Value at Risk simply calculated?
Explain the work of the financial manager in a business firm.
Otobai Motor Company is currently paying a dividend of $1.40 per year. The dividends are expected to grow at a rate of 18% for the next three years and then a constant rate of 5% thereafter forever. What is the vlaue of its current stock price? Assuming that the discount rate is 10%.{Hint: pages 84-
How is Poisson process defined?
Company A is a AAA-rated firm wanting to issue five-year FRNs. It determines that it can issue FRNs at six-month LIBOR + 1/8 percent or at the six-month Treasury-bill rate + ½ percent. Specified its asset structure, LIBOR is the preferred index. Comp
18,76,764
1934811 Asked
3,689
Active Tutors
1448128
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!