llustrate illiquidity risk and small cap premium
My investment bank told me that beta given by Bloomberg incorporates the illiquidity risk and small cap premium since Bloomberg does well-known Bloomberg adjustment formula. Is it true?
Expert
No. The well-known “Bloomberg adjustment formula” is an arbitrary adjustment within order to converge computed betas to 1 and contains multiplying the calculated beta with 0.67 and adding 0.33 to this. Adj. Beta = 0.67 x raw beta + 0.33. This is significant to point out that such adjustment is fully arbitrary.
Stock variable: It is a variable whose value is measured or evaluated at a point of time.
When you take out an $8,000 car loan that calls for 48 monthly payments of $225 each, then what is the APR of loan?
Explain deducing yield curve model of HJM.
Project Financing: It is the procedure of determining how to go around obtaining the resources needed in managing the costs related with the launch and continuing operation of a project. Whereas this procedure sometimes comprises the re-allocation of
Corporate Development: Corporate development is a term which references the range of planning options and strategies which can assist to move a company toward its targets. The procedure of this kind of strategic development can be exerted to just abou
What are the various types of Corporate Bonds?
What are Long-Term Debt and what are their main parts.
Is PER an excellent guide to investments?
What would the future value after 5 years of $100 be at 10% compound interest?
Kevin is interested in buying a 5-year bond which pays a coupon of 10 % on a semi-annual basis. The present market rate for similar bonds is 8.8 %. What must be the present price of this bond? (Round to the closest dollar.) (a) $1,048 (b) $965 (c) $1,099&n
18,76,764
1935056 Asked
3,689
Active Tutors
1451736
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!