Marcus Davidsson
Understanding the Modern Portfolio Theory (MPT) MPT argues that any given investment'srisk and return characteristicsshould not be viewed alone but should be evaluated by how it affects the overall portfolio's risk and return. That is, an investor can construct a portfolio of multiple assets that...
Learn about the goal-setting theory of motivation, and how it can help you strategically achieve even your loftiest ambitions.
Modern Portfolio Theory (MPT) is an investment strategy that seeks to optimise the risk-return trade-off in a diversified portfolio. The theory assumes that investors are risk-averse and that, for a given level of expected return, they will always prefer the less risky portfolio. It is based...
The post-modern portfolio theory is a portfolio optimization methodology that uses the downside risk of returns and builds on modern portfolio theory.
After defining the project, decide on the benchmarks to measure the success or failure of the project. If the project is for a client, consult them about how they define success. If not, conduct the necessary research to determine success criteria. ...
What is the portfolio consisting of the underlying asset and short position on the strike price worth at the expiration date? Well, if you had invested in the asset at thespot priceof $100 and it ended at $110, and you had to pay back the strike price at maturity from the amount you...
But inflation isn’t all bad. In a healthy economy, annual inflation is typically in the range of two percentage points, which is what economists consider a sign of pricing stability. When inflation is in this range, it can have positive effects: it can stimulate spending and thus spur dema...
GDP is a crucial measure of economic activity that helps policymakers and investors with decision-making.
Why is this portfolio usually not the portfolio chosen by FIs to optimize the return-risk trade-off? Portfolio: The portfolio refers to the combination of the investment by the individual or the financial institution like shares, bonds,...