Passive management, Financial Management

In the efficient markets, whether it is security, equity or fixed-income markets it is believed that the investors use some type of passive strategy in order to own and manage portfolios. Unlike active strategy, passive strategy believes in Efficient Market Hypothesis. Passive strategies do not out perform the market, but perform on par with the market. Such investors take consensus estimates of return and risk and accept the current market price as the best estimate of security's value.

Posted Date: 9/11/2012 2:07:09 AM | Location : United States







Related Discussions:- Passive management, Assignment Help, Ask Question on Passive management, Get Answer, Expert's Help, Passive management Discussions

Write discussion on Passive management
Your posts are moderated
Related Questions
The horizon price can be determined by incorporating Option-Adjusted Spread (OAS) into a total return analysis. But this requires a valuation mo

These were first issued during a period of extreme interest rate volatility in the late 1970s. Floating-rate bonds, which are also known as variable-rate bonds or simpl

Explain and derive the international Fisher effect. Answer:  The international Fisher effect can be acquired by combining the Fisher effect and the relative version of purchasi

What does an investment banker do when underwriting a new security issue for a corporation? While underwriting a new security issue an investment banker buys it and after that re

A cash-flow yield is the discount rate that makes the price of a mortgage-backed or asset-backed security equal to the present value of its cash flows. It is built

1 In the process of considering two job offers, Jill Saunders wants to determine which position would have the higher monetary value. Job 1 has a salary of $42,500 with $4,800 of n

Q. What are assumptions of Walters dividend model? 1. Constant Return and Cost of Capital: - The Walter' model presume that the firm's rate of return and its cost of capital ar

Twelve cases of leukemia are reported in people living in a certain census tract over a 5 year period. Is this number abnormal is only 6.7 cases would be expected based on national

Question 1 Under a hire purchase deal structured by X Finance Ltd. for Y Corporation, the finance company has offered to finance the purchase of equipment that costs Rs. 200 la

Corporation - Form of doing business pursuant to a charter granted by a state or federal government. Corporations mainly are characterized by the issuance of freely transferable CA