Markowitz Samenvattingen, Aantekeningen en Examens

CFA Level 1 - 101 Must Knows 368 Questions with Verified Answers Addition Rule of Probability - CORRECT ANSWER ADDITION: P(A or B) = P(A) + P(B) - P(AB) Roy's Safety First Criterion - CORRECT ANSWER Safety First Ratio = (E(R) - Rₜ) / σ Larger ratio is better If (Rₜ) is risk free rate, then it becomes Sharpe Ratio Sharpe Ratio - CORRECT ANSWER Sharpe Ratio = (E(R) - RFR) / σ Larger ratio is better If (Rt) is higher than RFR, then it becomes Safety First Ratio Centra...

Problem 11-13: The Martin-Beck Company operates a plant in St. Louis with an annual capacity of 30,000 units. Product is shipped to regional distribution centers located in Boston, Atlanta, and Houston. Because of an anticipated increase in demand, Martin-Beck plans to increase capacity by constructing a new plant in one or more of the following cities: Detroit, Toledo, Denver, or Kansas City. The estimated annual fixed cost and the annual capacity for the four proposed plants are as follows: T...

Problem 11-13: The Martin-Beck Company operates a plant in St. Louis with an annual capacity of 30,000 units. Product is shipped to regional distribution centers located in Boston, Atlanta, and Houston. Because of an anticipated increase in demand, Martin-Beck plans to increase capacity by constructing a new plant in one or more of the following cities: Detroit, Toledo, Denver, or Kansas City. The estimated annual fixed cost and the annual capacity for the four proposed plants are as follows: T...

CAIA Level 1 Questions and Answers 100% Accurate liquid alternatives Liquid alternatives typically have (1) constraints on permissible investments strategies (for example, liquidity and leverage limits), (2) no incentive fees, (3) less skilled managers as a result of less attractive compensation and limited strategies, and (4) an inability to earn substantial illiquidity premiums. constrained clone - A liquid investment fund that seeks to replicate the strategy of an existing alternative in...

Chapter Two: Modern Portfolio Theory questions and answers 2023 Define modern portfolio theory An investment framework that is useful in diversifying the risk when allocating assets in a financial, liquid (tradable) portfolio in order to maximise the potential return given a specified level of risk appetite or tolerance. Modern portfolio theory (MPT) is born out of investment common sense. The rationale is that minimising risk and maximising the potential return should be something that...

liquid alternatives - Answer Liquid alternatives typically have (1) constraints on permissible investments strategies (for example, liquidity and leverage limits), (2) no incentive fees, (3) less skilled managers as a result of less attractive compensation and limited strategies, and (4) an inability to earn substantial illiquidity premiums. constrained clone - A liquid investment fund that seeks to replicate the strategy of an existing alternative investment but imposes some constraint (e.g....

What are some characteristics of simulation models? - ANSWER-1. Discrete (vs. continuous) 2. Stochastic (vs. deterministic) 3. Dynamic (vs. static) What is simulation? - ANSWER-Simulation is the imitation of a real-world process of system over time. Simulation involves the generation of an artificial history to draw inferences concerning the operating characteristics of the real system that is represented. What is simulation good for? - ANSWER-1. Describe / analyze real or conceptual ...

Samenvatting van Financiering 2 van Nyenrode Business Universiteit. Deze samenvatting heeft een korte toelichting op hoofdstuken 7, 8, 13, 17, 18, 10, 20, 26, 27, 23, 31, 32 van Principles of Corporate Finance, global edition Brealey, Myers & Allen, (BMA) 12th edition, 2017, McGraw-Hill, ISBN 9990.

Finance 4020 Howald exam review 2023 with complete solution As diversification increases, the unsystematic risk of a portfolio approaches A) infinity B) 1 C) (n-1) x n D) 0 - D A single-index model uses ____________ as a proxy for the systematic risk factor. A) a market index, such as the S&P 500 B) the current account deficit C) the unemployment rate D) the growth rate in GNP - A In a factor model, the return on a stock in a particular period will be related to A) macroecono...

Investment analysis and portfolio management Mid-term with verified answers How many estimates are needed for the Markowitz Model? How many estimates are needed for the Single-Index model? - answer -3n+2 estimates What is the security characteristic line? - answer -The regression estimates with intercept alpha and slope beta What is alpha?