Risk and Return: Portfolio Theory and Asset Pricing Models Portfolio Theory Capital Asset Pricing Model (CAPM) Efficient frontier Capital Market Line (CML) Security Market Line (SML) Beta calculation Arbitrage pricing theory Fama-French 3-factor model Portfolio Theory • Suppose Asset A has an expected return of 10 percent and a standard deviation of 20 percent. Asset B has an expected return of 16 percent and a standard deviation of 40 percent. If the correlation between A and B is 0.6
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Mortgage by depositing Title-Deeds In mortgage by deposit of title deeds‚ there is simply a deposit of the document of title without anything more‚ without writing or without any other such formalities. This title deed creates a security. * How is this mortgage by deposit of title deed more useful? If a person is faced with the sudden necessity of money and has no time in hand to prepare a mortgage- deed ‚ this type of mortgage is an expedient way evolved by the legislature- a way which does
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FINANCIAL RATIO ANALYSIS Based on the table 1‚ it shows that the financial ratio was divided into four parts which are liquidity‚ assets management‚ long-term debt paying ability and profitability. Liquidity ratios are particularly interesting to short-term creditors and it is focus on current assets and current liability. In addition‚ General Thumb of rule for the current ratio should be at least 2:1. For the Gemini Electronic the current ratio is consistent and it is increase in year 2006. But
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AND PRICING DEPOSIT SERVICES Goal of This Chapter: This chapter has multiple goals. One of the most important is to learn about the different types of deposits financial institutions offer and‚ from the perspective of a manager‚ to discover which types of deposits are among the most profitable to offer their customers. We also want to explore how an institution’s cost of funding can be determined and examine the different methods open to institutions to price the deposits and deposit-related services
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Definition of ’Bank Deposits’ Money placed into a banking institution for safekeeping. Bank deposits are made to deposit accounts at a banking institution‚ such as savings accounts‚ checking accounts and money market accounts. The account holder has the right to withdraw any deposited funds‚ as set forth in the terms and conditions of the account. The "deposit" itself is a liability owed by the bank to the depositor (the person or entity that made the deposit)‚ and refers to this liability rather
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REMOTE DEPOSIT CAPTURE PROJECT Part 1: Project Integration Management Recently‚ several banks have started offering customers remote deposit capture. With this new service‚ customers do not have to physically go to banks or ATM machines to deposit checks anymore. Instead‚ they can send checks as a scanned image through an Internet portal provided by the bank. This technology can save banks and customers time and money making the transactions. Blue Bank is considering implementing this new service
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Coursework Ratio Analysis of Tesco and Sainsbury Introduction This report details the results of a ratio analysis of two of the largest retailers in the UK: Sainsbury and Tesco based on their audited financial statements for the financial years ending 2011‚ 2012‚ and 2013. The two companies are compared with each other based on their profitability and liquidity ratios. This report then critically interprets the results of the ratio analysis calculations and then discusses the weaknesses of ratio analysis
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investing in long term bank deposit which pays 6% interest per year‚ investing in the share market or starting his own tutoring business. He wants to maximise his financial return. He enjoys teaching and interacting with students and would like to continue tutoring. Investing in the share market will enable him to remain in his present job (still earning $25 000 per annum). He estimates that there is a 40% likelihood that the investment will be successful and return (profit) of $50‚000 p.a. a
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making timely deposits Tricia Saunders HS210 7/30/2013 Mary is the new Medical Assistant that Dr. Hart just hired. She has been with him and his practice for three months now. Mary noticed that Dr. Hart has always trusts his staff and does not have a good system for controlling the cash coming in. Unfortunately‚ situations happen like this all the time. This could easily lead to a big problem for the doctor and his practice. There are several reasons why making a timely deposit is important
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Returns 1 RETURNS Prices and returns Let Pt be the price of an asset at time t. Assuming no dividends the net return is Pt Pt − Pt−1 −1= Rt = Pt−1 Pt−1 The simple gross return is Pt = 1 + Rt Pt−1 Returns 2 Example: If Pt−1 = 2 and Pt = 2.1 then 2.1 Pt 1 + Rt = = = 1.05 and Rt = 0.05 Pt−1 2 Returns 3 The gross return over k periods (t − k to t) is 1 + Rt (k) := Pt−1 Pt−k+1 Pt Pt ··· = Pt−k Pt−1 Pt−2 Pt−k = (1 + Rt ) · · · (1 + Rt−k+1 ) Returns are • scale-free‚ meaning that they do not depend
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