When it comes to investment performance, what statistical notion do many portfolio managers employ to reflect risk

Q: Why does the advantage of Portfolio analysis is commonly used in strategy formulation is it raises…

A: The portfolio is the combination of different stocks and securities. These securities can be stocks,…

Q: What’s the risk of competition on financial markets and institutions profitability?

A: Competitive risk or Risk of Competition is the force that will hinder the organization in achieving…

Q: How do banks assess the risk appetite of each customer in terms of choosing the right investment?

A: Risk appetite is the ability to absorb or undertake a level of investment risk by the investor. This…

Q: Why should the managers make investment decisions on the basis of cashflows rather than profits?

A: Net income: The bottom line of an income statement which is the result of excess earnings from…

Q: What is the risk-return tradeoff that arises when . firm manages its working capital? Give tangible…

A: Financial risk is referred as the possibility or chance of losing the investment, basically an…

Q: why is the difference between a stock's current market price and its intrinsic value important to a…

A: Stock's current market price: The current stock price of a company is a price that an investor is…

Q: e market is efficient, what is the role of an active portfolio manager? would active portfolio…

A: ACTIVE PORTFOLIO MANAGEMENT: Active management (also known as active investing) is a portfolio…

Q: What is forecasting risk? Why is it a concern for the financial manager?

A: A financial manager can be considered a professional with the responsibility of overseeing the…

Q: risk implications of improving net profit margin to increase Return on Equity?

A: Net profit margin is the percentage of net profit to sales revenue

Q: tha

A: A financial forecast gives businesses access to cohesive reports, allowing finance departments to…

Q: What stock valuation models are available?

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

Q: Discuss the concepts of adverse selection and moral hazard. Provide an example of each of these…

A: Adverse selection or negative selection describes a situation where the two parties to a transaction…

Q: Describe its significance along with the characteristics that determine the quality of a market?

A: A financial market is a market where people buy or sell financial securities at a low transaction…

Q: Which is risk in the context of financial decision making and performance? Does performance…

A: Risk in the perspective of financial decision making and performance differs as the company faces…

Q: financia

A: The payout policy and the investment policy both are related to the dividend payout, and both are…

Q: Why is it preferred to have assets with negatively correlated returns in a well-diversified…

A: Correlation means degree to which two variance move in coordination of each other.  Correlation is…

Q: What critical success factors should all investment films involved in stockbroking and asset…

A: Asset management involves the practice of collecting, maintaining, and trading investments with the…

Q: Explain the Turnaround investing strategies?

A: The turnaround investment strategy is one of the foremost aspects of value investing.

Q: Investigate, in depth, the investment strategies of different companies using valuation techniques…

A: Investment Strategies of Different Companies Using Valuation Techniques Valuation Techniques…

Q: How do investors reduce investment risk by asset allocation and diversification?

A: Investment risk is a risk of potential financial loss built into the investment. For example:…

Q: The results presented in the chapter are based on historical data. Of what use are these results to…

A: Answer: The present chapter is about the real estate investment performances and portfolios. The…

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: How do companies manage risk? What are the factors that contribute to a high-risk project?

A: In business there must be ups and downs in their business surroundings.  In every business there…

Q: What is Competitiveness and how it affects financial market. Identify the risks that may arise.

A: The search for long-term competitive advantage is an important part of all business activity – one…

Q: Why do an investor need to know and understand Portfolio Management and how do they handle their…

A: Portfolio management is the process of selecting, prioritizing, and controlling an organization's…

Q: Describe the SML in words.  What is it saying about how investors form required rates of return?…

A: This question talks about Security Market Line (SML) and its implications on.Security Market Line is…

Q: predict

A: Financial planning is always a challenging task for nay company & the things become even more…

Q: Explain how differential weight to losses and gains effect investment decisions?

A: Prospect Theory assigns differential weight to losses and gains for making investment decisions.

Q: Which of the followings is NOT in the scope of investment planning? a. To develop a risk-free…

A: Financial planning is a term that refers to estimating a company's funding needs and determining how…

Q: What is the investment center manager's preferred technique of calculating investment turnover,…

A: It is a unit of a firm that is evaluated based on the usage of its capital rather than the profits…

Q: Which among the following is a better investment products, bonds, stocks or investment funds?…

A: Investment fundIt is the pool of capital that the number of investors makes payment into, which is…

Q: Why is TIME the portfolio manager’s best friend?

A: Portfolio manager: Portfolio managers are specialists that manage investment portfolios in order to…

Q: What are the weaknesses of capital market research?

A: Capital market is the market in which securities are traded. Primary market and secondary market are…

Q: Financial analysts have developed two performance measures: Market Value Added (MVA) and Economic…

A: Financial analysts and companies make use of Market Value Added (MVA) and Economic Value Added (EVA)…

Q: anks assess the risk appetite of each customers in terms of investment.

A: Step 1 "The aggregate degree and risk categories the financial institution is willing to embrace…