What is Modern Portfolio Theory
What is Modern Portfolio Theory?
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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.
Explain the tool of Green’s functions in Quantitative Finance.
How and why does working capital affect the incremental cash flow estimation for a proposed large capital budgeting project?
How is arbitrage argument estimated?
What are the Most Useful Performance Measures?
Explain the term NGARCH as of the GARCH’s family.
Illustrates an example of Option Adjusted Spread. Answer: Analyses by using Option Adjusted Spreads are common within Mortgage-Backed Securities (MBS).
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What are statistical or macroeconomic factors?
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