What is hedge portfolio?

Q: main investment in an optimal portfolio

A: Optimal portfolio helps to minimize the risk for a give rate of return or its helps to maximize  the…

Q: What roles, if any, do an investor's personal characteristics play in determining portfolio policy?

A: An investor is a person or any organization who contributes the money in investments such as debt,…

Q: What is an efficient portfolio?

A: Introduction: An efficient portfolio is one that delivers the highest anticipated return at a given…

Q: What is the portfolio beta?

A: To calculate the portfolio beta we will multiply weight of each stock with beta of each stock.

Q: Example or scenario of market portfolio?

A: The question is based on the concept of market portfolio, which  is a bundle of  all the assets…

Q: What is the importance of portfolio management?

A: Portfolio management is the management of the risk and returns on the securities and the group of…

Q: What is a replicating portfolio, and how is it used to find the valueof a derivative security?

A: Portfolio is a collection of investments held by an investor. Replicating portfolio is a financial…

Q: Define required rate of return on a portfolio

A: Introduction: Required rate of return is nothing but the minimum rate that an investor would…

Q: What is an infeasible portfolio?

A: Portfolio:Portfolio refers to the collection or bunch of investment tools such as:StocksMutual…

Q: How does an efficient portfolio relate to a feasible portfolio?

A: PortfolioSets of assets are termed as a portfolio. A portfolio comprises the number of bonds,…

Q: Briefly explain on elements of Modern Portfolio Theory.

A: Modern portfolio theory brings correlation between risk and return for investors.

Q: Explain the relationship between risk and return in portfolio management!

A: Risk refers to an adverse possibility of something to get happen. Risk is the possibility of loss.…

Q: What are the benefits and advantages of diversification for a portfolio?

A: Diversification of portfolio means allocating investments to different assets so that there is…

Q: Why does standalone risk differ from portfolio risk? Explain and give examples! Relates your answer…

A: While making an investment, an investor is required to thoroughly examine all types of risks and…

Q: 1. What are some fixed-income portfolio benchmarks available and why are they used?

A: Market-capitalization-weighted indices like Citigroup World Government Bond Index and Barclays…

Q: Which are the Elements of Portfolio Theory?

A: Portfolio theory: The theory of portfolio is about risk and return. The investor is concerned…

Q: What is the purpose of a cash flow hedge?

A:

Q: What is CAPM and how it used in portfolio management?

A: Risk and return are the two main parts of any investment and before investing in any security or…

Q: how to calculate portfolio beta?

A: Beta is used while calculating the volatility of the investment. It measures the systematic risk of…

Q: What is the purpose of portfolio management?

A: A portfolio is a systematic method of selection of investment mix to get benefit with a limited risk…

Q: does modern portfolio theory works?

A: MPT or Modern Portfolio Theory is defined as the mathematical framework regarding an assemble of the…

Q: Explain portfolio weight

A: SOLUTION:- Portfolio is a group of financial assets or investments, such as stocks, bonds, and cash.…

Q: What is market risk?

A: Investments in assets are subject to risks and uncertainty of returns  Risks can be systematic or…

Q: What is the relationship between the efficient portfolio and the feasible portfolio?

A: An efficient portfolio can be defined as portfolio which maximizes return for given level of risk or…

Q: Define market portfolio

A: A pool of investments that comprises of all the available investment opportunities across the globe…

Q: What is the portfolio's return?

A: The total investment returns produced on individual assets multiplied by the weight class of that…

Q: What is hedge fund?

A: Hedge funds are the type of funds that are established by the private investment partnership or…

Q: Discuss the role of risk-free assets in the Markowitz Portfolio Theory.

A: Harry Markowitz always focused on lowering the risk and diversification in order to maximize the…

Q: Why are covariance and correlation concepts so important in portfolio analysis?

A: In portfolio theory covariance is important since the portfolio variance is a mixture of individual…

Q: Explain risks in Portfolio?

A: Introduction: Risk is nothing but a potential for emergence of unexpected occurrences. There is…

Q: What is financial futures?

A: Financial futures are the contracts that are used for the selling and purchasing of different types…

Q: Explain portfolio

A: A portfolio is like a bucket in which all financial investments are held like stocks, debentures,…

Q: What is market portfolio?

A: A pool of investments that comprises of all the available investment opportunities across the globe…

Q: What is optimal portfolio?

A: One that minimises the risk for a given level of return or maximises the return for a given level of…

Q: What is the standard deviation of their portfolio?

A: Standard deviation in simple words mean volatility. So the standard deviation of portfolio means the…

Q: Can someone explain and give an example of markowitz portfolio theory?

A: The question is based on the concept of Markowitz portfolio theory also called Modern portfolio…

Q: Which statement about portfolio diversification is correct?

A: A portfolio is a combination of more than a stock or security. It is said to be diversified when the…

Q: What is the portfolio investment concept?

A: Portfolio is a group of stock, shares and bonds owned by the investors. It is a combination of asset…

Q: Illustrate investment risk?

A: Investment risk is the risk associated with the probability of losses occurring in relation to the…

Q: Explain portfolio risk

A: Portfolio risk reflects the overall risk for a portfolio of investments. It is the combined risk of…