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
Reston, Inc., has asked your corporation, Pruro, Inc., for financial assistance. As a long-time customer of Reston, your firm has decided to give that assistance. The question you

Types of Traders in Future and Option Markets: Hedgers Hedgers use the futures and options market principally for risk management purposes because of their exposure to pri

• Debtors :- Working Capital tied up in debtors must be estimated on the basis of cost of sales (excluding depreciation): [Cost of goods produces (that is raw materials + wages

Functions of Derivatives Market: To reduce risk or eliminate risks some ways and methods are there. Risk in the capital market can be reduced by diversification or putting eggs

Shareholders Shareholders are usually assumed to be interested in wealth maximisation. This though involves consideration of potential return and risk. Where a company is liste

Management of Sundry Debtors: SUNDRY - Miscellaneous infrequent or small customers that are not given individual ledger accounts but are classified as a group. SUNDRY CREDI

Eurodollar U.S. currency held on deposit in banks located outside the United States, mainly in Europe. Eurodollars are mostly used for settling international transactions outs

Q. Show the Working capital in a business? Working capital in a business is essential since of operating cycle. However the need for working capital doesn't come to an end afte

Q. Example on compound value of the single flow? Mr. X invests Rs. 1000 at 10% is compounded yearly for three years. Compute value after three years. FV = PV (1+i) n FV

What is Cost of Capital Cost of Capital is the rate which should be earned in order to satisfy required rate of return of the firm's investors. It may also be defined as the ra