Is the market risk premium a parameter
Is the market risk premium a parameter, for the world economy or for the national economy?
Expert
No. This risk premium is the return differential (above the return which can be acquired by investing in government bonds) which an investor needs for stock market investment. This is not a characteristic parameter of an economy as everyone has his own risk premium. The average market risk premium value is unknown and this cannot be considered as being the one of a representative investor.
Explain the branching structure of the binomial model.
Economy Impacts: An upcoming economy is indicated by rise in stock market, as stock market is primary indicator of a economic strength of a country. Progressing economy results in market boom. Yield of companies’ increases on improving economy,
financial engineering examples,benifits,disadvantages
I think Free Cash Flow (FCF) can be acquired from the Equity Cash Flow (CFac) using the relation as: FCF = CFac + Interests – ΔD. Is it true?
What is Bond Price Information: Answer: Corporate bond market is not considered to be much transparent as it trades predominantly over the counter and investors do n
Explain the term Option Trading Strategies?
Financial Management: It means organizing, planning, directing and controlling the financial activities like procurement and use of funds of enterprise. This means exerting general management principles to the financial resources of enterprise. <
Which determines the shape of the term structure of Interest rates?
XY Company has made a portfolio of such three securities: The correlation coeffic
Case Study 1 You work in Walt Disney Company's corporate finance and treasury department and have just been assigned to the team estimating later today. You quickly realize that the information you need is readily available online. 1) Go to http://finance.yahoo.com. under " Market Summary," you
18,76,764
1960385 Asked
3,689
Active Tutors
1442353
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!