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.
State the term Option Adjusted Spread? Answer: The OAS stands for Option Adjusted Spread is the constant spread added to a forward or a yield curve to match the mark
Who explained the credit instruments explosion?
9. Define: a) Conversion ratio b) Conversion value c) Straight bond value in relation to a convertible bond.
Explain the term Decision features in finite-difference methods.
What are different volatilities in vanilla equity option?
Why is structural approach to modelling risk of default born?
What are the difference between CAPM and APT?
What kind of insurance organisations usually takes on the greater risks: a life insurance company or casualty insurance company and a property?
Explain financial markets and why do they exist?
Explain Modern Portfolio.
18,76,764
1931587 Asked
3,689
Active Tutors
1434541
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!