Markowitz Samenvattingen, Aantekeningen en Examens

Well-structured INV3701 Assignment 1 (ANSWERS) Semester 2 2023 - DISTINCTION GUARANTEED. (DETAILED ANSWERS - DISTINCTION GUARANTEED!).

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 Central...

Een duidelijke al gehele samenvatting van het boek onroerend goed als belegging. HEEL HANDIG: de oefenvragen in de bijlagen. Dankzij de oefenvragen kan je gemakkelijk controleren of je de stof ook daadwerkelijk snapt. Het boek zelf is op hoogwaardig niveau geschreven. In de samenvatting is er rekening gehouden met simpeler Nederlands. De formules lijken al ingewikkeld genoeg, maar met deze samenvatting zul jij ze ook snappen.

This is a concise summary of all lectures of Investment Analysis at Tilburg University - MSc Finance. This summary will save you time in learning for the exam, because it mitigates the unnecessary parts of the lectures and give you a to the point view of what you need to know for the test. Good luck!

How many estimates are needed for the Markowitz Model? CORRECT ANSWER 2n+(n^2-n)/2 estimates What is the residual? CORRECT ANSWER Firm-specific surprise in the security return How many estimates are needed for the Single-Index model? CORRECT ANSWER 3n+2 estimates What is the security characteristic line? CORRECT ANSWER The regression estimates with intercept alpha and slope beta What is alpha? CORRECT ANSWER The difference between the fair and actually expected rates of return on a s...

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...

Summary of lecture slides of IA from 2021-2022 Note: does not include Markowitz portion of the subject, please refer to reader distributed by lecturer for that portion

Mean Variance Diagram - correct answer Mean(return) Variance(risk) Markowitz theory - correct answer Proposed diversification in portfolios Continuum Hypothesis - correct answer There is no set whose cardinality is strictly between that of the integers and the real numbers measure theory - correct answer a single number has a measure of 0 and can safely be ignored; no number between 0 and 1 on the line of real numbers matters because they don't have "positive measure" Covariance ...

Assumptions for CAPM question and answers 2023 updated Assumption 1 - correct answer All investors are Markowitz-efficient and seek to invest on the efficient frontier. The exact location depends on their risk return utility function Assumption 2 - correct answer Investors can borrow and lend any amount of money at the RFR Assumption 3 - correct answer All investors have homogeneous expectations, meaning they estimate the same probability distribution for future rates of return. Assump...