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.
What are the ways to choose the members of the board of directors of a corporation? Who do these board members owe their primary allegiance?
Where is Crash Metrics Used?
Explain relationship between advanced probability theory and option prices theory.
How do flotation costs affect the cost of raising the capital when a company issues new securities?
What is Vega?
Discuss risk from the perspective of the CAPM (Capital Asset Pricing Model).
What is the probability of probabilistic concepts occurrence in distribution?
Criticize the flexible exchange rate regime from the point of view of the proponents of the fixed exchange rate regime. If exchange rates are randomly fluctuating, that may discourage international trade and suppor
Explain the term Serial Autocorrelation.
how does adquate liquidity ensures a good international monetary sustem
18,76,764
1938280 Asked
3,689
Active Tutors
1448513
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!