process

Q: How do an investment's required rate of return vary with perceived risk? Explain with an example?

A: Required rate of return refers to the rate which the investors expects from their investments. This…

Q: If you introduce a risk free asset in your portfolio of risky assets; how will this change the shape…

A: In any portfolio there are two types of risk; risk from general market conditions and risks from…

Q: How does the creation of a portfolio reduce risk? What type of assets should be included in a…

A: Introduction Portfolio: Any combination of financial assets, such as stocks, bonds, and currency, is…

Q: What is the expected return on a portfolio? How can the expected return on a portfolio be…

A: Expected Return on Portfolio  =( Weights of Stock 1 * Return of Stock 1) + ( Weights of Stock 2 *…

Q: As a future manager, how will you make use of your knowledge in the computation of the relationship…

A: Risk is the possibility of something which may cause an adverse of desired result. Risk includes…

Q: How would the risk premium work out for a riskier investment?

A: A risk premium is a return on venture over the hazard free rate a financial specialist requires to…

Q: How does an efficient portfolio relate to a feasible portfolio?

A: PortfolioSets of assets are termed as a portfolio. A portfolio comprises the number of bonds,…

Q: theory

A: Portfolio theory is a mathematical framework that helps investors optimize their investment…

Q: Explain the relationship between risk and return in portfolio management!

A: Risk refers to an adverse possibility of something to get happen. Risk is the possibility of loss.…

Q: Conceptually, how does an investor choose his or her optimal portfolio?

A: The point where any of the ‘indifference curve’ are tangent to the efficient set of portfolios is…

Q: What is the expected return on a portfolio? How can the expected return on a portfolio be…

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Q: How do you determine the expected return and risk?

A: a) Expected return and standard deviation of a portfolio is calculated as below Here, wV= weights of…

Q: What does it mean that portfolio diversification can reduce risk, and how does the efficient…

A: Risk is the measurable probability of loss on an investment. It includes the possibility of losing…

Q: What is the relationship of risk to the investment?

A: There is a direct relationship between risk and return in investment decision making. It means…

Q: How do you perceive the relationship between risk and return in the context of investment…

A: The relationship between risk and return is a fundamental concept in finance and investment. In…

Q: Describe how a portfolio manager may help to mitigate the impact of these risks on portfolio.

A: Portfolio manager is the individual or the group of people who is professional in his field,…

Q: Explain if the operational risk is considered a risk or uncertainty? Why? If it is a risk, how can…

A: Operational Loss:   The risk involved in failures of Man, Machine, Material, and Methods during…

Q: what do you learn from this analysis including factors to be considered in choosing a preferred…

A: The portfolio consist of all the securities that is existed and traded . The portfolio consist of…

Q: discuss the importance of considering risk when analyzing investments?

A: Risk refers to the probability of uncertainties about future .Risk may also be termed as volatility…

Q: Explain what is the criterion used by a rational investor for choosing a financial investment in…

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Q: Is there a relationship between risk and return in building an effective portfolio?(explain

A: Portfolio management involves prioritization, selection and control of projects and programs of an…

Q: Which are the different assets that have the potential to be combined efficiently in a portfolio…

A: The efficient frontier graphically represents portfolios that maximize returns for the risk assumed.…

Q: How to construct Portfolio of different risk levels, given information about the risk-free rate and…

A: Portfolio management is the art and science of making investment decisions and managing investment…

Q: why do we need to quantify the investment risk and returns?

A: Almost all investments possess certain risks and return.

Q: What statistical concept do many portfolio managers use to represent a risk when considering…

A: The return an individual or organisation gets from any investment portfolio is termed as investment…

Q: can you evaluate the portfolio performance ?

A: To ascertain the potential of loss on an asset, loan, or investment, risk assessment is a broad term…