What is Modern Portfolio Theory
What is Modern Portfolio Theory?
Expert
In 1952 the Modern Portfolio Theory (MPT) of Harry Markowitz introduced the analysis of portfolios of investments by in view of the expected return and risk of individual assets and crucially, their inter-relationship as measured by correlation. Previous to this investors would study investments individually, increase portfolios of favoured stocks, and not see how they associated to each other. In Modern Portfolio Theory diversi?cation plays an significant role.
What are statistical or macroeconomic factors?
Explain the difference between simple and complicated formula of value at risk.
Explain distribution of individual numbers or random numbers.
When can you say that the U.S. dollar and the Canadian dollar have achieved purchasing power parity?
Explain the term EGARCH as of the GARCH’s family.
Describe long position in a futures (or forward) contract?A futures (or forward) contract is a vehicle for purchasing or selling a stated amount of foreign exchange at a stated price per unit at a particular time in the future. If the long hold
Define the term correct delta with an example?
Explain the purpose of alpha and beta in Capital Asset Pricing Model.
Describe the concept of the world beta of a security.The world beta measures the sensitivity of returns to security to returns to the world market portfolio. This is a measure of the systematic risk of the security in global setting. Statistically, the world beta can be des
Explain the stochastic volatility in an option-pricing.
18,76,764
1961602 Asked
3,689
Active Tutors
1427667
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!