What is the expected return on a portfolio v

Q: What is the relationship of a portfolio standard deviation to the weighted average standard…

A: The standard deviation measures volatility of an investment or the risk of an investment. The…

Q: How does the creation of a portfolio reduce risk? What type of assets should be included in a…

A: Introduction Portfolio: Any combination of financial assets, such as stocks, bonds, and currency, is…

Q: (4) What is a replicating portfolio? What isarbitrage?

A: Replicating Portfolio It's a pool of assets generated for replicating the pool of liabilities' cash…

Q: what is a zero cost strategy in portfolios

A: A zero cost strategy is a business strategy or decision that doesn’t have nay expenses. It doesn’t…

Q: what is portfolio load

A: Introduction : In simple words, when an individual or an entity purchase and collect different kinds…

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 stock valuation models are available?

A: The stock valuation models as follows: Absolute valuation: This method mostly emphases on finding…

Q: f cor

A: Introduction : In statistics, correlation or dependency refers to any statistically link among two…

Q: How do maturity risk premiums affect the yield curve?

A: A premium, which a borrower pays to the lender in the form of compensation of interest rate…

Q: What are the risk implications for an investor for a returns series that exhibits fat tails?

A: Fat tails means that there are more than three standard DEVIATION movements more than normal…

Q: What is the difference between active and passive portfolio management

A: Active Portfolio management is process of managing assets which are created with the aim of…

Q: Briefly explain on elements of Modern Portfolio Theory.

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

Q: theory

A: Portfolio theory is a mathematical framework that helps investors optimize their investment…

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: Conceptually, how does an investor choose his or her optimal portfolio?

A: The point where any of the ‘indifference curve’ are tangent to the efficient set of portfolios is…

Q: What is the expected return on a portfolio? How can the expected return on a portfolio be…

A:

Q: Is the risk-free rate the Treasury yield?

A: The risk-free rate refers to the rate of return on an investment that is having zero risk of loss.…

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: portfolio income includes

A: The objective of the question is to understand the components that make up portfolio income in the…

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: What is hedge portfolio?

A: Hedge portfolio It consists of the long position in a security i.e stock and also the long position…

Q: Explain Total Return Swap?

A: Swaps are agreement between different businesses and financial institutions  which is customized as…

Q: 2. What are the two types of fixed-income portfolio management strategies and why is each used?

A: The portfolio composed of securities resulting in the regular cash flows which will ultimately helps…

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: Q2. How portfolio return and risk is calculated? Explain the role of correlation among asset in…

A: The Sharpe rating measures investment profits that exceed the risk-free ratio, per unit of standard…

Q: What can be understood from active portfolio?

A: There are two strategies or approaches which can be used in management of portfolios which are…

Q: What is relationship between the returns on an asset and returns in the whole mark

A: A market portfolio is a theoretical concept that means a portfolio that consists of all the stocks…

Q: ine the difference between Passive and Active Strategies for a fixed

A: The portfolios are managed by the experienced fund managers and depending objective and mission of…

Q: What problems occur in (portfolio management)?

A: In the simplest terms, a portfolio is termed as the combination of various financial investments.…

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.