What did better mean specified by portfolio selection
What did ‘better’ mean specified with Markowitz questioned regarding portfolio selection?
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Markowitz answered a portfolio’s possible future performance in orders of its expected return and also its standard deviation. The last was to be interpreted as its risk. He demonstrated how to optimize a portfolio to provide the maximum expected return for a specified level of risk. That portfolio was said to be ‘efficient.’ This work later won Markowitz a Nobel Prize for Economics although is problematic to use in practice due to the difficulty in measuring the parameters especially, ‘correlation,’ ‘volatility ’and their instability.
Explain the working of breakthrough in low-discrepancy sequences used for option valuation.
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Which are the essential hypotheses so that valuations of the Economic Value Added (EVA) give similar results to discounting cash flows?
ABC Corp is issuing a 10-year bond with a coupon rate of 7 %. The interest rate for similar bonds is at present 9 %. Supposing annual payments, what is the current value of the bond? (Round to the closest dollar.) (a) $872 (b) $1,066 (c) $990 (d) $945. Q : Portfolio return probability XY Company XY Company has made a portfolio of such three securities: The correlation coeffic
XY Company has made a portfolio of such three securities: The correlation coeffic
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I cannot seem to begin a valuation. In order to compute E + D = VA (FCF; WACC) I require the WACC and to compute the WACC I need D and E. Where must I start?
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