Some‚ but not all‚ of the risk associated with a risky investment can be eliminated by diversification. The reason is that unsystematic risks‚ which are unique to individual assets‚ tend to wash out in a large portfolio‚ but systematic risks‚ which affect all of the assets in a portfolio to some extent‚ do not. Because unsystematic risk can be freely eliminated by diversification‚ the systematic risk principle states that the reward for bearing risk depends only on the level of systematic risk
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MGMT 31000 – Financial Management MGMT 310 - Financial Management 1 Buy Low‚ Sell High (p 435) • An asset is said to be overvalued if its price is too high given its expected return and risk. Suppose you observe the following situation: Security Beta Expected Return SWMS Co. 1.3 14% Insec Co. 0.8 10% • The risk-free rate is currently 6 percent. Is one of the two securities overvalued relative to the other? MGMT 310 - Financial Management 2 Buy Low
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* Project portfolio by Sophie Rothen Table of contents Introduction | 3 | Book report | 4 | Main characters | 5 | Themes | 7 | New book covers | 9 | Words and Phrases | 10 | Reflection | 11 | Film review | 12 | Interview | 14 | Song interpretation | 16 | Peer assessment | 18 | Vocabulary | 20 | Self evaluation | 22 | Introduction This portfolio documents my dealing with the book “The Boy in the Striped Pyjamas”‚ written by John
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business portfolio analysis as a step in the strategic planning process. The template allows the user to generate the matrix using MS-Excel. The MSWord template allows the user to tabulate and present the results of portfolio analysis in a Word document. www.business-tools-templates.com 11/1/2009 Page |1 11/1/2009 GE-MCKINSEY MATRIX MS-Excel & MS-Word Templates User Guide 1 1.1 INTRODUCTION The GE/McKinsey Matrix is a nine-cell (3 by 3) matrix used to perform business portfolio analysis
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deviations because the coefficient of variation considers the relative size of the expected returns of each investment. E8-4. Computing the expected return of a portfolio Answer: rp (0.45 0.038) (0.4 0.123) (0.15 0.174) (0.0171) (0.0492) (0.0261 0.0924 9.24% The portfolio is expected to have a return of approximately 9.2%. E8-5. Calculating a portfolio beta Answer: Beta (0.20 1.15) (0.10 0.85) (0.15 1.60) (0.20 1.35) (0.35 1.85) 0.2300 0.0850 0.2400 0.2700 0.6475 1.4725 E8-6. Calculating the required rate
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Assignment 1 NPV: = -PF + FV /(1+r) PV = FV/(1+r) or PV = C1/1-r + C2/(1-r)2 + .. + CT/(1-r)T Rate of return: R=(Vf-Vi)/Vf Rate r compounded m times a year: FV = C(1+r/m)mt 10% semiannually = 10.25% annually‚ Hence 10.25 is said to be the Effective Annual Yield (EAY) 1+EAY = (1+r/m)mt Assignment 2 Perpetuity The value of D received each year‚ forever: PV = D/r Annuity The value of D received each year for T years: PV = (D/r)*[1 – 1/(1+r)T] Growing Perpetuity PV = D/(R-g) R: the
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and CA 11. Related corporate strategy- diversification d. Can transfer competencies‚ activities- distribution channel 12. Three types of corporate strategy e. Limited diversification iii. Single Business – risky portfolio. iv. Dominant business f. Related diversification v. Related constrained- net benefit and sharing. Cost synergies. Increase revenue synergies. Economies of scale. Transfer core competency for net benefit. g. Unrelated
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asset: > > > > + + sigm > > > > > > > a > > b > > > > > D Chisq) 1 2 10 8.2292 0.6065 2 Zero-beta CAPM (Black) The zero-beta CAPM is based on the properties of the portfolio frontier. One of them tells us that for each efficient portfolio rp of risky assets‚ there exists a portfolio on the lower part of the portfolio frontier‚ rzp ‚ which is uncorrelated with it. Its β defined as Cov(rp ‚ rzp )/V ar(rp ) is therefore 0. That’s why the model is called the zero-beta CAPM. Let γ = E(rzp )‚ then
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sensorial‚ the meaningful and last but not least the symbolic (Shedroff‚ 2001). The aim of this portfolio is to draw upon relevant theories and concepts related to the event and provide the readers with information about a specific event supporting it with annotated visual evidence of the design and managed experience such as photographs‚ menus‚ and promotional materials. Moving forward this portfolio will present the afternoon tea experience in one of the most famous and luxury hotels in Edinburgh
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Professional Portfolio and Theoretical Reflection Paper The counselor is viewed as a wise person‚ a teacher‚ experienced in living‚ mature enough to have a workable set of values; knowledgeable about careers and how people make decisions‚ effective in assessing human traits and behaviors. Since standardized tests are important counseling tools‚ the counselor is skilled in their use‚ especially in their interpretation. One might further expect that the counselor would enjoy disseminating information
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