- published: 21 Jan 2016
- views: 9998
The mechanics behind diversification shown using two risky assets.
Finding the proportions we invest in the risky vs risk-free assets.
www.investmentlens.com We have only 2 risky assets in a world where CAPM holds. We have to make use of their expected returns, volatilities and correlation to compute expected return and volatility of market portfolio. We then are asked to calculate the return on a risk free security.
►► NEW! https://www.cfa-course.com offers you the perfect preperation for your CFA® exam -- innovative and flexible! Overview of our CFA® online courses: https://www.cfa-course.com/online-courses We are talking about Markowitz Portfolio Theory and especially Capital Market Line. The Capital Market Line is the tangent line drawn from the point of the risk-free asset to the feasible region for risky assets. Learn more: https://www.cfa-course.com/cfa-corporate-finance-and-portfolio-management/portfolio-management/introduction-to-portfolio-management/markowitz-portfolio-theory.html The CFA® exam-oriented knowledge will be taught in the online courses in basic texts, instructional videos and hundreds of exercises No matter if you're interested in quantitative methods or economics, our onl...
The capital market line is determined by a mix of: the riskfree asset and the market portfolio. The market portfolio, in turn, consists of all risky assets (this example has only two assets). For more financial risk management videos, visit our website at http://www.bionicturtle.com!
This simple example helps clarify how to solve for weights when constructing a minimum variance portfolio with 2 assets. After finding the weights of both assets, we use them to estimate expected return and volatility of the minimum variance portfolio.
The definition, visualization and demonstration of the risk-free asset, or risk free investment, or risk-free rate in Excel. We discuss this in the context of portfolio theory, from Harry Markowitz, including the opportunity set, indifference curve and the efficient frontier. https://factorpad.com/fin/glossary/risk-free-asset.html Topics covered in our investment glossary: Excel tutorial, Python examples, portfolio theory, portfolio return, portfolio risk, correlation, regression, linear algebra, alpha signal, risk models, performance attribution. Glossary: https://factorpad.com/fin/glossary/index.html Innovators: https://factorpad.com/fin/innovators/index.html https://factorpad.com
On the Fed ending QE 3, or money printing, Merk says, “It’s wishful thinking. We have had this a few times and the market has had a little bit of a fit. The one thing that central banks have achieved is that they have compressed risk premiums, meaning risky assets don’t appear risky anymore. Junk bonds don’t yield anything anymore, and the stock market doesn’t appear risky anymore. If risk comes back into the market because the Fed wants to do an exit . . . means asset prices will have to plunge. . . . It’s just not possible to have a Fed exit without having a very, very severe recession. That’s not what the Fed wants.” Merk goes on to say, “Ultimately, asset prices do not reflect fundamentals.” Join Greg Hunter of USAWatchdog.com as he goes One-on-One with Axel Merk, founder of Mer...
Compute optimal portfolios that combine risky assets, risk free asset, and borrowing.
This video is also available in German: http://youtu.be/a8CTDa1xob4 As markets expected, the ECB has slashed its benchmark interest rate to a record low of 0.5percent. What are the near-term effects? Amid a temporary weak patch in the global economy, the positive environment for equities remains intact. Oil, hedge funds and real estate offer further upside potential, says Anja Hochberg, Head of Investment Strategy at Credit Suisse. Click the following link to read the article/transcript on our website: http://bit.ly/12lajOK ------------------------------------------------------------------------------------------ Check out our playlist for more expert interviews and videos on the state of the global economy: http://www.youtube.com/playlist?list=PL0B44DF914C4FB3ED Subscribe to our ch...
To download 10 free tutorials on Portfolio Management question bank Visit: http://www.edupristine.com/ca/free-10-day-course/cfa-portfolio-management/ Understand the difference between: Indifference curve; Utility function & Capital allocation line and learn how Capital Allocation is the possible combination of risk-free assets and optimal risky asset portfolio. More about CFA on: http://www.edupristine.com/ca/courses/cfa/ About EduPristine: Trusted by Fortune 500 Companies and 10,000 Students from 40+ countries across the globe, EduPristine is one of the leading Training provider for Finance Certifications like CFA, PRM, FRM, Financial Modeling etc. EduPristine strives to be the trainer of choice for anybody looking for Finance Training Program across the world. Subscribe to our YouT...
2016 has left markets fearful, are there any success stories? Philippe Schindler, Blue Lakes Advisors You can view this video and the full video archive on the Dukascopy TV page: http://www.dukascopy.com/tv/en/#178041 Смотрите Dukascopy TV на вашем языке: http://www.youtube.com/user/dukascopytvrussian 用您的语言观看杜高斯贝电视: http://www.youtube.com/user/dukascopytvchinese Miren Dukascopy TV en su idioma: http://www.youtube.com/user/dukascopytvspanish Schauen Sie Dukascopy TV in Ihrer Sprache: http://www.youtube.com/user/dukascopytvgerman Regardez la Dukascopy TV dans votre langue: http://www.youtube.com/user/dukascopytvfrench Veja a TV Dukascopy na sua língua: http://www.youtube.com/user/dukascopytvpt
Gerstein Fisher Founder and Head of Quantitative Research & Portfolio Strategy Gregg S. Fisher explains how adding low-correlated assets to a portfolio, even if “risky” on a standalone basis (where risk is measured by standard deviation), can enhance the overall portfolio risk/return profile. Visit Gerstein Fisher online at www.gersteinfisher.com. Related: "Alternative Asset Classes" https://www.youtube.com/watch?v=YcNhTWVJgy0
Let's start a fire, biggest one you've ever seen
You bring the matches, I'll bring the gasoline
Ignite it, delight it, the flames grow higher
Burn the world upon a funeral pyre
Light this motherfucker like a roman candle
Burn this bitch staight to the ground
Let's not worry about consequences
If it's standing we'll bring it down
Destroy it all, show no inhibition
Revel and rejoice in unbridled demolition
Smash it, fuck it, nothing will remain
Detect it and wreck it but never take the blame
We have ignition!
Shake the earth from its very foundation
Lay waste to the world without hesitation
Break it, take it, you don't have any reason