I have two doubts:- 1) Why security market line is applicable for individuals stock, inefficient portfolio and efficient portfolio?? Like capital market line why SML is not applicable only to efficient portfolios?? 2) Can we use characteristic line to find ...
SSEI QForum Latest Questions
What is meaning of this statement -” In modern portfolio theory the efficient frontier is different for different investors, but in capital market theory the efficient frontier is same for all investors ” ?? Does this mean that MPT does ...
I have two doubts :- 1) What is the meaning of “earnings / cash flows are simply moved between periods ” ?? 2) Why hedging is not a zero sum game??
What is the meaning of the sentence -“In other words ,value of firm will not change despite any attempt to hedge risk exposures” ??
Sir your response to Q 46213 was :- “If you mean overpriced/unpriced relative to model price, you also need to calculate Model Price as per Black Scholes Model. If market price is more than BSM price – it will be over ...
Suppose we have two call options :- 1) one month at X =400 2) two month at X = 410 . The prices are $27 and $29 for one month and two month resp and implied volatility ...
Sir your response to Q43156 was :- ” Review of operational risk is already sent by soumya via email Hypothesis testing and time series already covered in quants new additions class 6 part 2 How do firm’s manage financial risk is indirectly ...
Hello Karan Sir, The following classes are still not shared :- 1) How do firms manage financial risk (Foundations) 2) Review of Operational Risk 3) Hypothesis Testing and Time Series new additions( ...
Correlation captures only linear relationship.If i take a non linear relationship like y=x^2 , correlation will not capture it and i will get correl as 0 . So i took say x ...
In credit risk second class while teaching two loan portfolio(with correlation) Karan sir said that asset correlation is always positive, but while doing Choloskey decomposition there was a correlation/ variance -covariance matrix in which asset correlation was negative. ...