Slide 1Portfolio Analysis Topic 12 I. Efficient Market Theory (EMT) Slide 2 Efficient Market Theory I.Where did EMT come from? II.What is the Efficient Market Theory? III.What…
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1.Chapter 7 Why Diversification Is a Good Idea2. The most important lesson learnedis an old truth ratified. - General Maxwell R. Thurman 3. Outline Introduction Carrying…
1.1Determinants and consequences of InequalityAim: Explaining the evolution of inequality across countriesand over time• What are the major factors affecting income inequality?•…
Slide 1 Portfolio Construction 01/26/09 Slide 2 2 Portfolio Construction Where does portfolio construction fit in the portfolio management process? What are the foundations…
Capital Market Theory Chapter 7 * Efficient Frontier Investors should select portfolios on the basis of expected return and risk. A portfolio is efficient if: It has the…
Chapter 5 - Market Mechanisms and Prices This Lecture This Lecture Diversification: principles of portfolio theory Rational expectations and forms of âirrationalityâ Hedging…
Let’s summarize where we are so far: The optimal combinations result in lowest level of risk for a given return. The optimal trade-off is described as the efficient frontier.…
Let’s summarize where we are so far: The optimal combinations result in lowest level of risk for a given return. The optimal trade-off is described as the efficient frontier.…