Show capital market line, Risk Management

Assignment Help:

Q. Capital market line?

When their exists complete agreement between all investor with regards to a security Expected return, variance and covariance as well as on the rate of return on the risk free assets the effective set of portfolio could well be in linear form if it is true the reason for the investor consideration towards a specific portfolio depend on his indifferent curve and preference towards risk and return the linear efficient set facility each investor to allocate his funds among the various risk securities in the same relative proportion in addition to addition risk free borrowing and lending for achieving the personally preferred overall combination of risk and return . it can be recalled here that all portfolio located on the linear efficient set involves an investor in in a tangency portfolio combined with the varying degree of the risk free borrowing and landing therefore the linear efficient set enables every investment to participate in the market portfolio without the debarring him to reach it for want of his preference curves this is technically called separation theory.


Related Discussions:- Show capital market line

Explain what is meant by the term single sign-on, Question: (a) Explain...

Question: (a) Explain what is meant by the term Single sign-on in the context of access control? Give three examples of single sign-on technologies. (b) Describe how the Ker

Perform a risk assessment of the poultry industry, Question: The govern...

Question: The government of a certain country aims at ‘expanding the domestic and international markets for poultry products produced in the country'. The plan is to incr

Register sample format and example risk, Using the above information, and a...

Using the above information, and any other information (state assumptions), create the start of a risk register for the project, using the Risk Register Sample below as a guide. Id

Hedging, Suppose a farmer is expecting that her crop of grapefruit will be ...

Suppose a farmer is expecting that her crop of grapefruit will be ready for harvest and sale as 150,000 pounds of grapefruit juice in 3 months time. She would like to use futures

Risk and Return , In a report not to exceed five double-spaced typewritten ...

In a report not to exceed five double-spaced typewritten pages, analyze the results obtained from the three simulations performed, identify the source of the differences, and selec

Measurement of total risk, I need a report on Measurement of Total Risk. Ca...

I need a report on Measurement of Total Risk. Can you please assist me for Measurement of Total Risk report for about 2500 words?

Differentiate between speculation and arbitraging, Question: a) Using i...

Question: a) Using illustrative and numerical example, differentiate between speculation and arbitraging in the context of foreign exchange market. b) One year borrowing and

Risk management strategy, The risk register and risk management strategy sh...

The risk register and risk management strategy should justify and report on the rationale of the register, priority and its management . Guidelines Risk  is assessed

Write Your Message!

Captcha
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