Difference between the two numbers

Assignment Help Management Theories
Reference no: EM131979762

Portfolio A returned 5.86% p.a. over the evaluation period compared to a 2.57% p.a. for the S&P 500. This equates to a difference or outperformance of 3.29% p.a. According to the CAPM, the annualized alpha of portfolio A is 3.32% p.a. Explain the difference between the two numbers. (Note: It's not due to rounding)

Reference no: EM131979762

Questions Cloud

Importance to both the employer and the employee : Choose one of the following provisions of this law, and explain the provision and its importance to both the employer and the employee:
What is the expected npv of the project : The Base Case scenario has an NPV of $1,000 and probability of 45%. The Worst Case scenario has an NPV of ($5,000) and a probability of 25%. (show work
What is the value of the firm future cash flows : Given 12% cost of capital, what is the value of the firm's future cash flows under this set of assumptions?
Strong form of market efficiency : If your client believed in the strong form of market efficiency, what portfolio substitution(s) would you make to your optimal risky portfolio?
Difference between the two numbers : According to the CAPM, the annualized alpha of portfolio A is 3.32% p.a. Explain the difference between the two numbers. (Note: It's not due to rounding)
Formula and financial calculator methods : Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.
Determine the present value of the future minimum operating : Use a financial calculator to determine the present value of the future minimum operating lease payments. Round remaining life to the nearest whole number.
What is the role of the material covered financial managemen : What is the role of the material covered financial management courses in keeping the US economy competitive in world markets?
How can the financial management course material : How can the financial management "course material" be applied in everyday job? In what ways, for example, can some of the concepts be used in your job?

Reviews

Write a Review

Management Theories Questions & Answers

  Learning in action

Learning contract proposal that will form the basis of your learning contract report.

  Change is the only constant

"Change is the only constant " Evaluate the different types of change that have occurred in Sony.

  How do advertisers try to use group influence

How do advertisers try to use group influence?  Will you find any specific examples and explain the relevant theory of group behavior and influence?

  Case study:saving sony

You have been appointed by Sony as a consultant on change management. Advise Sony on how they could implement the change by using the various theories of change you have learnt.

  How the stock market works

The purpose of this project is to help you to gain an understanding of how the stock market works and of the relationship between theory and practice.

  Find the optimal production quantities

Find not only the optimal production quantities, but also the optimal total cost.

  Describe the management process

Describe the management process and identify the skills required to manage business organizations.

  Case study : bert''s bonsai and aquatic sport museum

Case Study : Bert's Bonsai and Aquatic Sport Museum Prepare a knowledge management system.

  Knowledge management techniques

Demonstrate understanding of the many-sided nature of knowledge management

  Theory of transtheoretical model

Demonstrate understanding of the many-sided nature of knowledge management

  Write a paper on historical trends of management

Write a paper on Historical Trends of Management.

  Theory of reasoned action

Theory of Planned Behavior and Integrated Behaviors Model

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd