What are Capital Market Line and Market Portfolio
What are Capital Market Line and Market Portfolio?
Expert
According to the theory, no one must hold portfolios that are not on the efficient frontier. Moreover, if you introduce a risk-free investment in the universe of assets, the efficient frontier turns into the tangential line demonstrated in figure. This line is termed as the Capital Market Line and the portfolio at the point at that it is tangential is termed as the Market Portfolio.
Now, again as per to the theory, no one ought to hold any portfolio of assets but the Market Portfolio and the risk-free investment.
Describe Euro-medium-term-note market Normal 0
In what circumstances would market to book ratios of value be misleading?
Illustrates a swap dealer. A swap dealer is a market maker of swaps and supposes a risk position in matching opposite sides of a swap and in assuring that each of counterparty fulfils its contractual compulsion to
Explain in brief capital rationing? What are reasons that a firm should practice capital rationing?
You are required to submit a bid to supply 200,000,000 widgets per year to the State of Illinois for the next five years. Your company has an idle tract of real estate that cost $1,500,000 ten years ago; if your company sold the land today, it would generate $3,000,000 after the taxes were paid. The
Explain the differences between foreign bonds & Eurobonds. Also describe why Eurobonds make up the lions share of the international bond market.The two segments of the international bond market are following: foreign bonds & Eurobo
Explain total assets equal the sum of total liabilities and equity.
Normal 0 false false
Explain the different types of arbitrage.
Assume you are a euro-based investor who just sold Microsoft shares which you had bought six months ago. You had invested 10,000 euros to purchase Microsoft shares for $120 per share; the exchange rate was $1.15 per euro. You sold the stock for $135 per share
18,76,764
1944760 Asked
3,689
Active Tutors
1448019
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!