0 evaluări0% au considerat acest document util (0 voturi)
14 vizualizări1 pagină
This document outlines an investment analysis assignment that requires students to explain key concepts in portfolio theory and risk management. It includes defining risk aversion and evidence investors are risk averse, explaining Markowitz portfolio theory and the capital asset pricing model, defining measures of risk, characteristics of risk-free assets, measuring diversification, types of systematic and unsystematic risk, and differences between passive and active portfolio managers. Students are to address each topic in detail using an assigned textbook as a reference.
This document outlines an investment analysis assignment that requires students to explain key concepts in portfolio theory and risk management. It includes defining risk aversion and evidence investors are risk averse, explaining Markowitz portfolio theory and the capital asset pricing model, defining measures of risk, characteristics of risk-free assets, measuring diversification, types of systematic and unsystematic risk, and differences between passive and active portfolio managers. Students are to address each topic in detail using an assigned textbook as a reference.
This document outlines an investment analysis assignment that requires students to explain key concepts in portfolio theory and risk management. It includes defining risk aversion and evidence investors are risk averse, explaining Markowitz portfolio theory and the capital asset pricing model, defining measures of risk, characteristics of risk-free assets, measuring diversification, types of systematic and unsystematic risk, and differences between passive and active portfolio managers. Students are to address each topic in detail using an assigned textbook as a reference.
1. What do we mean by risk aversion and what evidence indicates that
investors are generally risk averse? Explain in detail. 2. Explain the basic assumptions behind the Markowitz portfolio theory? 3. What is meant by risk and what are some of the alternative measures of risk used in investments? 4. What are the main assumptions of the capital asset pricing model? Explain each assumption. 5. What is a risk-free asset and what are its risk-return characteristics? 6. Define portfolio management. How do we measure diversification for an individual portfolio? 7. What is systematic and unsystematic risk? How they affect the business? Explain. 8. How does the goal of a passive equity portfolio manager differ from the goal of an active manager? Explain.
TEXT BOOK: Investment Analysis and Portfolio Management Seventh Edition by Frank K. Reilly & Keith C. Brown
A simple approach to passive investing: An Introductory Guide to the Theoretical and Operational Principles of Passive Investing for Building Lazy Portfolios that Perform Over Time