What problems occur in (portfolio management)?

Q: what is risk and return in the context of financial decision making?

A: Risk and return are two very important concept used in any financial decision making. Two financial…

Q: Describe Asset/Liability Models and explain why it is better than Value-at-Risk Models for Portfolio…

A: The process through the use of assets and liabilities are managed in such a way that the risk of…

Q: What is the Capital Asset Pricing Model (CAPM)?What are the assumptions that underlie themodel?

A: The CAPM is an equilibrium model which stipulates the association among required rates of return and…

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: Give the arguments for active portfolio management

A: An active portfolio manager is an investor that buys and sells stocks in order to outperform a…

Q: Critically outline the use of portfolio theory and asset pricing models in capital markets.

A: Capital markets A capital market is a place where investments are channeled between suppliers with…

Q: Is an investment pool is equivalent to a firm's treasury? How?

A: Introduction Investment is an important financial activity of an organisation. Every Organisations…

Q: what is portfolio load

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

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: 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: 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: This is a generalized framework for analyzing the relationship between risk and return: a. capital…

A: Risk refers to the uncertainty related to the investment within the future. Risk arises within the…

Q: Briefly explain on elements of Modern Portfolio Theory.

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

Q: Contrast investor's use of capital markets with their use of money markets

A: Capital market is basically the one where long term securities are brought and sold. Stock Market ,…

Q: FACTORS i

A: Portfolio refers to the collection of all the financial instruments such as bonds, commodities,…

Q: How to analysis the Liquidity in Finacial Market analysis?

A: Liquidity is the availability of the current assets to fulfill the current liabilities of the…

Q: Describe the Procedures used to determine the rate of return internal to nonsimple investments?

A: Procedure to compute the rate of return internal to non-simple investmentIt is an investment for…

Q: Explain the concept of the efficient frontier. In addition, outline the relationship between the…

A: The Capital Asset Pricing Model (CAPM) assumes that the risk-return portfolio can be optimised. An…

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: How do you call a strategy that separately examines capital market conditions and the investor's…

A: The strategy is called as “Integrated Asset Allocation Strategy”.

Q: types of investmestment in a portfolio management

A: Portfolio management means selection and building of investments that helps to meet long term…

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 are the quantitative characteristics of the assets and how to measure them?

A: An economic resource that helps the businessman to conducting business activity effectively and…

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: 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: 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: Explain portfolio weight

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

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: Please answer based on your own understanding. Describe the importance of portfolio management.…

A: Let me start be explaining what portfolio management is. Portfolio management involves first of all…

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: Which of these examples demonstrate portfolio income? (Select all that apply.)

A: A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash…

Q: How does the capital asset pricing model (CAPM) influence financial decisions regarding risk and…

A: CAPM is related to the connection between the securities and their expected returns. CAPM is…

Q: What is the capital asset pricing model (CAPM)? What are the assumptions that underlie the model?

A: Capital Asset Pricing Model is the most common security pricing model used in Finance. It is…

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: How can fi nancial statement analysis be used to screen for potential equity investments?

A: The financial statement analysis is used to analyze the financial statements of a company. The…

Q: Define Arbitrage (risk-free) portfolio

A: An arbitrage portfolio is a portfolio with zero factor risk - all the factor sensitivities are equal…

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: Describe about the capital markets in detail?

A: Capital markets are areas where savings funds and speculations are diverted between the capital…

Q: Identify and explain the functions of Capital Markets with supporting examples?

A: The market where both buyer and seller interest in order to buy as selling of financial securities…