Modern portfolio theory
Videos
Modern portfolio theory, or mean-variance analysis, is a mathematical framework for assembling a portfolio of assets such that the expected return is maximized for a given level of risk. It is a forma
Efficient Frontier. The hyperbola is sometimes referred to as the 'Markowitz Bullet', and is the efficient frontier if no risk-free asset is available. With a risk-free asset, the straight line is the efficient frontier.
Philippine stock market board
Modern portfolio theory suggests a diversified portfolio of shares and other asset classes (such as debt in corporate bonds, treasury bonds, or money market funds) will realise more predictable returns if there is prudent market regulation.
Capital asset pricing model
Videos
In finance, the capital asset pricing model is a model used to determine a theoretically appropriate required rate of return of an asset, to make decisions about adding assets to a well-diversified po
Modern portfolio theory
…for the asset today. The price paid must ensure that the market portfolio's risk / return characteristics improve when the asset is added to it. The CAPM is a model that derives the theoretical required expected return (i.e., discount rate) for an asset in a market, given the risk-free rate available to…
WACC Ansatz