'Risky portfolio' presentation slideshows

Efficient Diversification

Efficient Diversification. 6. Bodie, Kane and Marcus Essentials of Investments 9 th Global Edition. 6.1 Diversification and Portfolio Risk. Market/Systematic/Non diversifiable Risk Risk factors common to whole economy Unique/Firm-Specific/Nonsystematic/ Diversifiable Risk

490 views • 49 slides

Efficient Diversification

Efficient Diversification. 6. Bodie, Kane and Marcus Essentials of Investments 9 th Global Edition. 6.1 Diversification and Portfolio Risk. Market/Systematic/Non diversifiable Risk Risk factors common to whole economy Unique/Firm-Specific/Nonsystematic/ Diversifiable Risk

680 views • 40 slides

Chapter 5

Chapter 5. Risk and Return: Past and Prologue. Rates of Return: Single Period. HPR = Holding Period Return P 1 = Ending price P 0 = Beginning price D 1 = Dividend during period one. Rates of Return: Single Period Example. Ending Price = 24 Beginning Price = 20 Dividend = 1

403 views • 40 slides

CHAPTER 7

CHAPTER 7. Optimal Risky Portfolios. The Investment Decision. Top-down process with 3 steps: Capital allocation between the risky portfolio and risk-free asset Asset allocation across broad asset classes Security selection of individual assets within each asset class.

579 views • 38 slides

CHAPTER 7

CHAPTER 7. Optimal Risky Portfolios. The Investment Decision. Top-down process with 3 steps: Capital allocation between the risky portfolio and risk-free asset Asset allocation across broad asset classes Security selection of individual assets within each asset class.

385 views • 38 slides

Chapter 9

The Capital Asset Pricing Model. Chapter 9. Capital Asset Pricing Model (CAPM). It is the equilibrium model that underlies all modern financial theory. Derived using principles of diversification with simplified assumptions.

378 views • 37 slides

Efficient Diversification

Efficient Diversification. 6. Bodie, Kane, and Marcus Essentials of Investments, 9 th Edition. 6.2 Asset Allocation with Two Risky Assets. Covariance and Correlation Portfolio risk depends on covariance between returns of assets Expected return on two-security portfolio.

547 views • 34 slides

Asset Management

Asset Management. Lecture 6. Outline for today. Treynor Black Model M2 measure of performance Sensitivity to return assumption Tracking error. Treynor Black Model. The optimization of a risky portfolio using a single-index model is know as the Treynor Black model (or diagonal model ).

560 views • 31 slides

Introduction to Capital Market Theory and Asset Pricing Model FINM014 Dr Xun Lei

775 views • 27 slides

Week 2

Week 2. Efficient Diversification. Diversification and Portfolio Risk. The risky portfolio of only one stock.

525 views • 27 slides

Asset Pricing Models (chapter 9)

Asset Pricing Models (chapter 9). Capital Asset Pricing Model (CAPM). Elegant theory of the relationship between risk and return Used for the calculation of cost of equity and required return Incorporates the risk-return trade off Very used in practice

496 views • 21 slides

Optimal Risky Portfolios

Optimal Risky Portfolios. Objective. Objective - finding the optimal risky portfolio Start with two risky assets find portfolios with lowest possible risk, given a set of assets find the tangency portfolio based on the set of risky assets and the risk-free asset

371 views • 17 slides

Asset Management

272 views • 17 slides

Portfolio Management: What do we know?

265 views • 8 slides

MBF 2263 Portfolio Management & Security Analysis

MBF 2263 Portfolio Management & Security Analysis. Lecture 4 Efficient Frontier & Asset Allocation. THE EFFICIENT FRONTIER AND MARKOWITZ PORTFOLIO THEORY. The Markowitz portfolio theory allows us to examine cases in which the portfolio consists of more than two stocks

206 views • 6 slides