Modern portfolio theory is a more recent approach for constructing portfolios. What are the major merits and drawbacks of this approach? Explain. What statistical concept do many portfolio managers use to represent risk when considering in...
Modern portfolio management has increasingly embraced machine learning (ML) models to predict returns due to their ability to capture complex interactions between factors. The drawback is that the end result is often something close to a black box model with highly optimised outputs. This means it...
What are the strengths and weaknesses of the Arbitrage pricing theory (APT) as a theory of how risk and expected return are related? Explain how the theory of comparative advantage relates to the need for international business. How does the theory of po...
Portfolio rebalancing motives ate an old topic in exchange-late theory (Pentti Kouri, 1982; William H. Branson and Dale W. Henderson, 1985). While the earlier literature mostly lacks modern microfoundations, its emphasis on capital markets resonates mote than ever with the stylized facts of ...
Schwartz Value Theory (SVT; Schwartz inAdvances in Experimental Social Psychology, 25, 1–65,1992) offers a coherent and well-organized framework for describing and explaining ideological differences. Though not developed within SVT, the pattern of tradeoffs among different values suggests adaption to ...
a. Why are banks able to maintain reserves that are only a fraction of the demand and savings deposits of their customers? b. Is a person's money safe in a bank? Why or why not? Why is it difficult for small banks and thrifts to...
This disagreement could potentially be explained away by the existence of systematic errors in the measurements, but no such errors have been identified. As a result, many researchers are looking for holes in cosmological theory and new physics. ...
At the same time, Smaldino had been developing a theory of social identity signaling and social complexity that involved similar arguments. "I found my theory difficult to model as social identity doesn't have well-established, cross-culturally validated measurement paradigms, and was looking for ...
经济学名词解释资料(Economic terms explain the data).doc,经济学名词解释资料(Economic terms explain the data) Economics is a modern independent discipline that studies how a society uses scarce resources to produce valuable goods and services and distr
What are the major assumptions of modern portfolio theory as postulated by Harry Markowitz? Explain the dividend discount model of valuing equity shares. What are the merits and demerits of this model? What is the P/E valuation method? Under what circumstances should a stock ...