volatility. How would you go about finding the cost of equity using the dividend growth model or the arbitrage pricing theory for your SLP company? Cost of equity using dividend growth model = Estimated dividend of next year/Current Stock price +Growth We will require additional information regarding the: 1) Growth rate of dividends 2) Estimated dividend 3) Stock price Arbitrage pricing theory As per this model the cost of equity is governed by two groups of factors: macro factors
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HML = difference between high and low book-to-market stocks * MOM = returns difference between stocks with high and low past returns * CAPM Fama-French (FF) model: Doesn’t include MOM. Predicts that firm size affects average returns Arbitrage risk: * Execution (or leg) risk: Only
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Price discrimination Price discrimination is the practice of selling the same product at different prices to different customers‚ when there is no difference in the cost to produce the product. Price discrimination is done to maximize profits. This occurs when market prices are set differently to different buyers‚ according to the willingness of each buyer to pay (demand curve) rather than setting a uniform price. It can be seen in the image below how if the seller kept the uniform price of Africa’s
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1. Suppose that you have $1 million and the following two opportunities from which to construct a portfolio: a. Risk-free asset earning 12% per year. b. Risky asset with expected return 30% per year and standard deviation of 40%. If you construct a portfolio with a standard deviation of 30%‚ what is its expected rate of return? Ans: P = 30 = yy y = 0.75 E(rP) = 12 + 0.75(30 12) = 25.5% 2. Suppose that there are many stocks in the security market and that the characteristics of Stocks
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2013年CFA二级培训项目 Economics 何旋 金程教育资深培训师 日期：2012年12月16日 地点： ■ 上海 □北京 □深圳 何旋 ¾ 职称：金程教育资深培训师、通过CFA三级、通过FRM二级 ¾ 授课：主讲CFA一级、二级、三级固定收益、衍生产品，一级、二级数 量分析和组合管理、经济学、职业伦理，FRM一级二级，RFP投资策划 课程等。 ¾ 专业能力：讲课幽默风趣，最擅长的是将复杂问题简单化，通过举大量 实例帮助学员理解复杂问题。金融理论知识扎实，在金融教学中有自己 独到的方法。多年对CFA、FRM、RFP等考试体系的研究使她全面掌握 考试重点，尤其擅长经济学、投资学课程的讲授，能将复杂的理论具体 化，在授课过程中能够从考生角度出发，提供自己在备考过程中的经验 和方法，帮助考生更好的准备考试。 ¾ 客户：摩根史丹利、工商银行、中国银行、瑞穗实业银行、南京银行、 兴业基金、太平洋保险等。 ¾ 联系方法：hexuanf@gmail.com ¾ 微博：何旋katherine 2-94 100% Contribution Breeds Professionalism CFA二级课程框架
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different at each layer? Access switches‚ poe‚ port security‚ 100Mbs‚ link aggregation‚ QOS Distibution‚ link aggregation‚ security policies‚ 10 Gbs‚ redundancy‚ qos‚ Core Distibution‚ link aggregation‚ 10 Gbs‚ redundancy‚ qos 4. What is the difference between the conventional network architecture and a converged network architecture? Converged network combines all into 1‚ phone‚ voice‚ video‚ data 5. What is link aggregation‚ at which layer (s) does it occur? Faster thoughput using more Ethernet
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annum‚ respectively. The six-month forward rate is $1.3478/€. A foreign exchange advisory service has predicted that the euro will appreciate to $1.3790/€ within six months. (a) Using $1‚000‚000 or its equivalent in euros show what would be your arbitrage profit/(loss) per
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"Prices‚ Interest Rates‚ and Exchange Rates in Equilibrium" (International Parity Conditions) Table of Content Executive Summary 3 1. Introduction .4 2. Literature Review 6 3. Findings and Analysis: 10 a. PPP .. 10 b. FE .. ..12 c. IFE .. .14 4. Conclusion & Recommendations . .. 16 Bibliography .17 Appendix A. Historical
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COURSE NOTES Financial Mathematics MTH3251 Modelling in Finance and Insurance ETC 3510. Lecturer: Prof. Fima Klebaner School of Mathematical Sciences Monash University Semester 1‚ 2012 Contents 1 Lecture 1. Introduction. 1.1 Prices of stocks as functions of time . . . . . . . . . . . . . . . . . . 1.2 Simulated functions of time that look like stock prices . . . . . . . . 1.3 Example of modelling using Random Variables . . . . . . . . . . . . 2 Lecture 2. Random variables. Revision. 2.1 Random
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for their significance physiology. Consequent to vessel injury‚ platelets are activated to form plug at the site of injury to prevent blood loss. Vessel injury exposes the subendothelial matrix components to blood cells causing the adhesion and aggregation of platelet (Gowert et al.‚ 2017). Upon activation of platelet‚ signal transduction will stimulate the activation phospholipases by the mobilization and increase intracellular
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