When compiling the "input list" for creating an efficient portfolio, we may wish to think of equity as an implicit call option and compute its with respect to the total value of the firm.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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When compiling the "input list" for
creating an efficient portfolio, we may
wish to think of equity as an implicit
call option and compute its
with respect to the total value of the
firm.
Transcribed Image Text:When compiling the "input list" for creating an efficient portfolio, we may wish to think of equity as an implicit call option and compute its with respect to the total value of the firm.
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