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

Define value at risk as a measure of market risk, Black Rock Investors is ...

Black Rock Investors is managing the pension fund of Virgin Atlantic. Sir Richard Branson wants to assess the risk of the portfolio following the Euro crisis. During a discussion

Explain the use of hani-raafat risk calculator, Question 1: (i) Descri...

Question 1: (i) Describe five steps to risk assessment for work-related driving activities. (ii) List ten important points which employers should consider to ensure that wo

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

CAPM, Sibling Incorporated has a beta of 1.0. If the expected return on the...

Sibling Incorporated has a beta of 1.0. If the expected return on the market is 12%, what is the expected return on Sibling Incorporated''s stock? Answer 12% 14% 10% ca

Risk management and financial institutions, On September 25,2008 a portfoli...

On September 25,2008 a portfolio worth $10 million consisting of investments in four stock indices: DJIA, FTSE 100, CAC 40 and NIKKEI 225. The value of the investment in each index

Risk, Explain how budget planning is related risk management

Explain how budget planning is related risk management

Risks associated with cyclone and storm activity, Part A Glenda has ta...

Part A Glenda has taken a household insurance on her classic Queenslander home in North Queensland.  At the time of application, the insurer "URINSURED" asked numerous questio

Risk management, Several issues have arisen on the Kauri Café Project. Four...

Several issues have arisen on the Kauri Café Project. Four months have passed since the project started. ABC Co. are complaining about not being paid appropriately you initially th

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