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In finance, the capital asset pricing model (CAPM) is used to determine a theoretically appropriate required rate of return of an asset.

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Portfolio Revision

A portfolio is a combination of various investment products like bonds, shares, securities, and mutual funds. Portfolio revision involves changing the mix of securities in an existing portfolio by adding or removing assets. This is done to maximize returns and minimize risks. Reasons for portfolio revision include having additional funds to invest, changes in financial goals, or market fluctuations. There are active and passive portfolio revision strategies, with active strategies involving more frequent changes and passive only changing according to predetermined rules. The roles of a portfolio manager include designing customized investment plans, keeping up to date on the market, guiding clients impartially, and regularly communicating with clients.

Capm

The Capital Asset Pricing Model (CAPM) was developed in the 1960s as a way to determine the expected return of an asset based on its risk. CAPM assumes that investors will be compensated only based on an asset's systematic or non-diversifiable risk as measured by its beta. The model builds on Markowitz's portfolio theory and introduces the security market line, which plots the expected return of an asset against its beta. According to CAPM, the expected return of an asset is equal to the risk-free rate plus a risk premium that is proportional to the asset's beta.

Modern Portfolio Theory

The document summarizes the evolution of modern portfolio theory from its origins in Harry Markowitz's mean-variance model to subsequent developments like the Sharpe single-index model and CAPM. It discusses how Markowitz showed investors could maximize returns for a given risk level by holding efficient portfolios on the efficient frontier. The Sharpe model reduced the inputs needed for portfolio risk estimation by correlating assets to a market index rather than each other. CAPM then defined the market portfolio as the efficient portfolio and allowed a risk-free asset, changing the shape of the efficient frontier.

Capital Asset Pricing Model

The Capital Asset Pricing Model (CAPM) uses beta to measure the non-diversifiable risk of a security and determine its expected return. CAPM assumes investors want to maximize returns and only consider systematic risk. It models expected return as the risk-free rate plus a risk premium based on the security's beta. The Security Market Line graphs this relationship between beta and expected return. Some researchers like Fama and French have expanded CAPM with additional size and value factors.

Capital Asset Pricing Model (CAPM)

This document provides an overview of the Capital Asset Pricing Model (CAPM). It was developed by Sharpe and Linter based on Markowitz's portfolio theory. CAPM assumes investors will create a portfolio using risky assets and risk-free assets, such as treasury bills. It can be used to analyze the risk and return of individual securities. The model relates the expected return of securities to market risk using the security market line formula.

EFFICIENT MARKET THEORY.pptx

The document discusses the efficient market hypothesis (EMH) which argues that stock prices reflect all available information. It defines three forms of market efficiency - weak, semi-strong, and strong - based on the types of information reflected in stock prices. The weak form states that prices reflect all historical price data, while the semi-strong form argues that prices immediately incorporate publicly available information. Empirical tests provide mixed support for the different forms of the EMH. The document also discusses potential market inefficiencies and anomalies that appear to contradict the EMH, such as the size effect and January effect.

Difference between systematic and unsystematic risk

Systematic risk, also known as market risk, is uncertainty inherent to the entire market and consists of day-to-day stock price fluctuations. It includes interest, market, and inflation risks and is uncontrollable, arising from macroeconomic factors that affect many securities. Unsystematic risk is uncertainty from a specific company or industry and includes business and financial risks, which can be reduced through diversification. It is controllable and arises from micro-economic factors affecting individual securities.

CAPITAL ASSET PRICING MODEL

This document provides an overview of the Capital Asset Pricing Model (CAPM). It begins by explaining that CAPM helps determine the fair price of assets by comparing the fair price to the market price. It then lists the key assumptions of CAPM, including that investors can borrow/lend at the risk-free rate and there are no taxes or transaction costs. The document goes on to define terms like the market portfolio return, market risk premium, individual risk premium, and the security market line. It also discusses how to calculate beta through regression analysis and how beta represents the systematic risk of an asset. In the end, it notes some of the limitations of CAPM and possibilities for relaxing its assumptions.

Portfolio Revision

A portfolio is a combination of various investment products like bonds, shares, securities, and mutual funds. Portfolio revision involves changing the mix of securities in an existing portfolio by adding or removing assets. This is done to maximize returns and minimize risks. Reasons for portfolio revision include having additional funds to invest, changes in financial goals, or market fluctuations. There are active and passive portfolio revision strategies, with active strategies involving more frequent changes and passive only changing according to predetermined rules. The roles of a portfolio manager include designing customized investment plans, keeping up to date on the market, guiding clients impartially, and regularly communicating with clients.

Capm

The Capital Asset Pricing Model (CAPM) was developed in the 1960s as a way to determine the expected return of an asset based on its risk. CAPM assumes that investors will be compensated only based on an asset's systematic or non-diversifiable risk as measured by its beta. The model builds on Markowitz's portfolio theory and introduces the security market line, which plots the expected return of an asset against its beta. According to CAPM, the expected return of an asset is equal to the risk-free rate plus a risk premium that is proportional to the asset's beta.

Modern Portfolio Theory

The document summarizes the evolution of modern portfolio theory from its origins in Harry Markowitz's mean-variance model to subsequent developments like the Sharpe single-index model and CAPM. It discusses how Markowitz showed investors could maximize returns for a given risk level by holding efficient portfolios on the efficient frontier. The Sharpe model reduced the inputs needed for portfolio risk estimation by correlating assets to a market index rather than each other. CAPM then defined the market portfolio as the efficient portfolio and allowed a risk-free asset, changing the shape of the efficient frontier.

Capital Asset Pricing Model

The Capital Asset Pricing Model (CAPM) uses beta to measure the non-diversifiable risk of a security and determine its expected return. CAPM assumes investors want to maximize returns and only consider systematic risk. It models expected return as the risk-free rate plus a risk premium based on the security's beta. The Security Market Line graphs this relationship between beta and expected return. Some researchers like Fama and French have expanded CAPM with additional size and value factors.

Capital Asset Pricing Model (CAPM)

This document provides an overview of the Capital Asset Pricing Model (CAPM). It was developed by Sharpe and Linter based on Markowitz's portfolio theory. CAPM assumes investors will create a portfolio using risky assets and risk-free assets, such as treasury bills. It can be used to analyze the risk and return of individual securities. The model relates the expected return of securities to market risk using the security market line formula.

EFFICIENT MARKET THEORY.pptx

The document discusses the efficient market hypothesis (EMH) which argues that stock prices reflect all available information. It defines three forms of market efficiency - weak, semi-strong, and strong - based on the types of information reflected in stock prices. The weak form states that prices reflect all historical price data, while the semi-strong form argues that prices immediately incorporate publicly available information. Empirical tests provide mixed support for the different forms of the EMH. The document also discusses potential market inefficiencies and anomalies that appear to contradict the EMH, such as the size effect and January effect.

Difference between systematic and unsystematic risk

Systematic risk, also known as market risk, is uncertainty inherent to the entire market and consists of day-to-day stock price fluctuations. It includes interest, market, and inflation risks and is uncontrollable, arising from macroeconomic factors that affect many securities. Unsystematic risk is uncertainty from a specific company or industry and includes business and financial risks, which can be reduced through diversification. It is controllable and arises from micro-economic factors affecting individual securities.

CAPITAL ASSET PRICING MODEL

This document provides an overview of the Capital Asset Pricing Model (CAPM). It begins by explaining that CAPM helps determine the fair price of assets by comparing the fair price to the market price. It then lists the key assumptions of CAPM, including that investors can borrow/lend at the risk-free rate and there are no taxes or transaction costs. The document goes on to define terms like the market portfolio return, market risk premium, individual risk premium, and the security market line. It also discusses how to calculate beta through regression analysis and how beta represents the systematic risk of an asset. In the end, it notes some of the limitations of CAPM and possibilities for relaxing its assumptions.

Efficient market hypothesis

This document summarizes the efficient market hypothesis (EMH) in three sentences:
The EMH states that market prices fully reflect all available public information and adjust instantly to new information. It has three forms - weak, semi-strong, and strong - with each form incorporating more types of information. Most research supports the weak and semi-strong forms, finding that historical data and public information are reflected in prices, but the strong form is not supported as non-public information can be used to earn excess returns.

Capital asset pricing model

The Fama-French model predicts a lower required return for this stock compared to the CAPM. This is because the Fama-French model accounts for additional factors beyond just market risk.

Markowitz model

The Markowitz Model assists investors in selecting efficient portfolios by analyzing possible combinations of securities. It helps reduce risk through diversification by choosing securities whose price movements are not perfectly correlated. The model determines the efficient set of portfolios and allows investors to select the optimal portfolio based on their preferred risk-return tradeoff. Markowitz introduced diversification and showed holding multiple lower-risk securities can reduce overall portfolio risk compared to a single higher-risk security. The model calculates expected returns, variances, and correlations between securities to determine the minimum risk portfolio for a given level of return.

capm theory

1. The document discusses risk on portfolios and individual securities, as well as measures of risk like average absolute deviation and standard deviation.
2. It then explains the Capital Asset Pricing Model (CAPM), which relates expected return and systematic risk for assets. CAPM was developed by William Sharpe and considers both systematic and unsystematic risk factors.
3. The key elements of CAPM are outlined, including the capital market line, security market line, beta as a measure of individual asset risk compared to the market portfolio, and the CAPM formula.

Portfolio Evaluation and Revision

Portfolio Theories , single index , multi index , Sharp Ratio, Treynor Ratio ,Jensen’s Alpha and Formulation Plan.

Arbitrage pricing theory (apt)

The document discusses the Arbitrage Pricing Theory (APT), which assumes an asset's return depends on various macroeconomic, market, and security-specific factors. The APT model estimates the expected return of an asset based on its sensitivity to common risk factors like inflation, interest rates, and market indices. It was developed by Stephen Ross in 1976 as an alternative to the Capital Asset Pricing Model. The APT formula predicts an asset's return based on factor risk premiums and the asset's sensitivity to each factor.

Security Market Line

The concept of the Security Market Line is very popular for portfolio management. It helps to derive the pricing of risky securities by plotting their expected returns.
To know more about it, click on the link given below:
https://efinancemanagement.com/investment-decisions/security-market-line

Portfolio revision

The document discusses various portfolio revision strategies, including formula plans, rupee cost averaging, constant rupee plans, and variable ratio plans. Formula plans provide rules for buying and selling securities to time the market. Rupee cost averaging involves regularly investing fixed amounts to lower average costs. Constant plans maintain a fixed investment amount or ratio between aggressive and conservative holdings. Variable ratio plans change proportions based on market trends.

Asset Pricing Models

Capital Asset Pricing Model, CAPM Assumptions, Borrowing and Lending Possibilities, Risk-Free Lending, Borrowing Possibilities, The New Efficient Set, Portfolio Choice, Market Portfolio, Characteristics of the Market Portfolio, Capital Market Line, The Separation Theorem, Security Market Line, CAPM’s Expected Return-Beta Relationship, How Accurate Are Beta Estimates?,

RISK & RETURN

RISK & RETURN UNDER SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT IS DESCRIBED, ALL THE DETAILED EXPLANATION OF TOPIC IS GIVEN UNDER THIS DOCUMENT.
CAN ALSO REFERRED FOR FINANCIAL MANAGEMENT, INSURANCE.

Risk & return analysis

1) Total risk of a security is composed of systematic risk, which stems from external market factors, and unsystematic risk, which is specific to a company.
2) Diversifying a portfolio by holding many securities with returns that are not perfectly positively correlated can reduce total risk through lowering unsystematic risk exposure.
3) The degree of risk reduction from diversification depends on the correlation between the returns of the securities in the portfolio. Perfectly negatively correlated securities eliminate risk, while perfectly positively correlated securities do not allow for risk reduction through diversification.

Portfolio construction

1) Portfolio construction involves blending different asset classes like stocks, bonds, and cash to obtain returns while minimizing risk through diversification.
2) There are two main approaches - the traditional approach selects securities to meet an investor's needs, while the Markowitz efficient frontier approach constructs portfolios that maximize expected return for a given level of risk.
3) The Markowitz model helps investors reduce risk by choosing securities whose returns do not move together, identifying the efficient frontier of portfolio options, and allowing investors to select the portfolio with the highest return for a given risk level.

Portfolio selection, markowitz model

PORTFOLIO, financial assets, Physical Assets, investment purpose, maximize his returns, and minimize the risk, optimal portfolio., MARKOWITZ MODEL, statistical procedures, risk-return tradeoff, return on investment, risk-averse., monetary inflow, variance of return, efficient frontier, Investment objective, portfolio manager, DIVERSIFICATION, consistent return, Lower risk, portfolio, securities by industry, Systematic risk, unsystematic risk, riskless borrowing, preference for return

Modern portfolio theory

Modern Portfolio Theory provides a framework for constructing investment portfolios to maximize expected return based on a given level of market risk. It assumes investors aim to reduce risk through diversification among assets with low correlations. Markowitz models show how to combine assets to obtain an efficient portfolio with the highest return for a given risk. Mean-variance optimization identifies the portfolio on the efficient frontier with the best risk-return tradeoff. However, the theory relies on historical data and assumptions that may not always hold in real markets.

fundamental analysis

noorulhadi Lecturer at Govt College of Management Sciences, noorulhadi99@yahoo.com
i have prepared these slides and still using in mylectures, Reference: Portfolio management by S kevin and onlin

Capital Asset Pricing Model - CAPM

It shows the relationship between expected return and systematic risk of individual asset or securities or portfolios

CAPM

CAPM model that describes the relationship between risk and expected return and that is used in the pricing of risky securities.

Introduction portfolio management

noorulhadi Lecturer at Govt College of Management Sciences, noorulhadi99@yahoo.com
i have prepared these slides and still using in mylectures, Reference: Portfolio management by S kevin and online sources

Investment Management Risk and Return

This document discusses the relationship between risk and return in investments. It defines total risk as the sum of systematic and unsystematic risk. Systematic risk stems from external market factors that affect all investments, while unsystematic risk is specific to a particular company. The expected return and risk of individual stocks varies, with higher risk investments generally offering higher returns. A portfolio combines multiple assets to reduce overall risk through diversification. The portfolio risk depends on the covariance and correlation between the individual assets' returns. Diversifying across assets with low correlation is an effective way to reduce risk.

Investment management

This document provides an introduction to investment management. It defines investment as committing funds to achieve additional income or growth over time. Investments involve allocating assets, expecting positive returns, and having a long time frame. Investments can range from safe to risky. The objectives of investment include achieving good returns, reducing risk, liquidity, safety of funds, and hedging against inflation. Favorable factors for investment include legal safeguards, a stable currency, financial institutions and services, business organization structures, and choice of investment. The document outlines various investment media including direct, indirect, variable principal, and non-security investments. It also discusses features of an investment program such as safety, liquidity, income stability, and appreciation

Capital Asset Pricing Model

Capital Asset Pricing Model (CAPM)
A model that describes the relationship between risk and expected return. The general idea behind CAPM is that investors need to be compensated in two ways: time value of money & risk. The time value of money is represented by the risk-free (rf) rate in the formula and compensates the investors for placing money in any investment over a period of time. The other half of the formula represents risk and calculates the amount of compensation the investor needs for taking on additional risk. This is calculated by taking a risk gauge (beta) that compares the returns of the asset to the market over a period of time and to the market premium (Rm-rf).

The capital asset pricing model (capm)

The document discusses the Capital Asset Pricing Model (CAPM). It explains that CAPM provides a framework to determine the required rate of return on an asset based on its relationship to risk. It also discusses the model's assumptions and how beta is used to measure non-diversifiable risk. Further, it shows how CAPM is used to estimate the cost of equity capital and determine an investment's intrinsic value.

Efficient market hypothesis

This document summarizes the efficient market hypothesis (EMH) in three sentences:
The EMH states that market prices fully reflect all available public information and adjust instantly to new information. It has three forms - weak, semi-strong, and strong - with each form incorporating more types of information. Most research supports the weak and semi-strong forms, finding that historical data and public information are reflected in prices, but the strong form is not supported as non-public information can be used to earn excess returns.

Capital asset pricing model

The Fama-French model predicts a lower required return for this stock compared to the CAPM. This is because the Fama-French model accounts for additional factors beyond just market risk.

Markowitz model

The Markowitz Model assists investors in selecting efficient portfolios by analyzing possible combinations of securities. It helps reduce risk through diversification by choosing securities whose price movements are not perfectly correlated. The model determines the efficient set of portfolios and allows investors to select the optimal portfolio based on their preferred risk-return tradeoff. Markowitz introduced diversification and showed holding multiple lower-risk securities can reduce overall portfolio risk compared to a single higher-risk security. The model calculates expected returns, variances, and correlations between securities to determine the minimum risk portfolio for a given level of return.

capm theory

1. The document discusses risk on portfolios and individual securities, as well as measures of risk like average absolute deviation and standard deviation.
2. It then explains the Capital Asset Pricing Model (CAPM), which relates expected return and systematic risk for assets. CAPM was developed by William Sharpe and considers both systematic and unsystematic risk factors.
3. The key elements of CAPM are outlined, including the capital market line, security market line, beta as a measure of individual asset risk compared to the market portfolio, and the CAPM formula.

Portfolio Evaluation and Revision

Portfolio Theories , single index , multi index , Sharp Ratio, Treynor Ratio ,Jensen’s Alpha and Formulation Plan.

Arbitrage pricing theory (apt)

The document discusses the Arbitrage Pricing Theory (APT), which assumes an asset's return depends on various macroeconomic, market, and security-specific factors. The APT model estimates the expected return of an asset based on its sensitivity to common risk factors like inflation, interest rates, and market indices. It was developed by Stephen Ross in 1976 as an alternative to the Capital Asset Pricing Model. The APT formula predicts an asset's return based on factor risk premiums and the asset's sensitivity to each factor.

Security Market Line

The concept of the Security Market Line is very popular for portfolio management. It helps to derive the pricing of risky securities by plotting their expected returns.
To know more about it, click on the link given below:
https://efinancemanagement.com/investment-decisions/security-market-line

Portfolio revision

The document discusses various portfolio revision strategies, including formula plans, rupee cost averaging, constant rupee plans, and variable ratio plans. Formula plans provide rules for buying and selling securities to time the market. Rupee cost averaging involves regularly investing fixed amounts to lower average costs. Constant plans maintain a fixed investment amount or ratio between aggressive and conservative holdings. Variable ratio plans change proportions based on market trends.

Asset Pricing Models

Capital Asset Pricing Model, CAPM Assumptions, Borrowing and Lending Possibilities, Risk-Free Lending, Borrowing Possibilities, The New Efficient Set, Portfolio Choice, Market Portfolio, Characteristics of the Market Portfolio, Capital Market Line, The Separation Theorem, Security Market Line, CAPM’s Expected Return-Beta Relationship, How Accurate Are Beta Estimates?,

RISK & RETURN

RISK & RETURN UNDER SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT IS DESCRIBED, ALL THE DETAILED EXPLANATION OF TOPIC IS GIVEN UNDER THIS DOCUMENT.
CAN ALSO REFERRED FOR FINANCIAL MANAGEMENT, INSURANCE.

Risk & return analysis

1) Total risk of a security is composed of systematic risk, which stems from external market factors, and unsystematic risk, which is specific to a company.
2) Diversifying a portfolio by holding many securities with returns that are not perfectly positively correlated can reduce total risk through lowering unsystematic risk exposure.
3) The degree of risk reduction from diversification depends on the correlation between the returns of the securities in the portfolio. Perfectly negatively correlated securities eliminate risk, while perfectly positively correlated securities do not allow for risk reduction through diversification.

Portfolio construction

1) Portfolio construction involves blending different asset classes like stocks, bonds, and cash to obtain returns while minimizing risk through diversification.
2) There are two main approaches - the traditional approach selects securities to meet an investor's needs, while the Markowitz efficient frontier approach constructs portfolios that maximize expected return for a given level of risk.
3) The Markowitz model helps investors reduce risk by choosing securities whose returns do not move together, identifying the efficient frontier of portfolio options, and allowing investors to select the portfolio with the highest return for a given risk level.

Portfolio selection, markowitz model

PORTFOLIO, financial assets, Physical Assets, investment purpose, maximize his returns, and minimize the risk, optimal portfolio., MARKOWITZ MODEL, statistical procedures, risk-return tradeoff, return on investment, risk-averse., monetary inflow, variance of return, efficient frontier, Investment objective, portfolio manager, DIVERSIFICATION, consistent return, Lower risk, portfolio, securities by industry, Systematic risk, unsystematic risk, riskless borrowing, preference for return

Modern portfolio theory

Modern Portfolio Theory provides a framework for constructing investment portfolios to maximize expected return based on a given level of market risk. It assumes investors aim to reduce risk through diversification among assets with low correlations. Markowitz models show how to combine assets to obtain an efficient portfolio with the highest return for a given risk. Mean-variance optimization identifies the portfolio on the efficient frontier with the best risk-return tradeoff. However, the theory relies on historical data and assumptions that may not always hold in real markets.

fundamental analysis

noorulhadi Lecturer at Govt College of Management Sciences, noorulhadi99@yahoo.com
i have prepared these slides and still using in mylectures, Reference: Portfolio management by S kevin and onlin

Capital Asset Pricing Model - CAPM

It shows the relationship between expected return and systematic risk of individual asset or securities or portfolios

CAPM

CAPM model that describes the relationship between risk and expected return and that is used in the pricing of risky securities.

Introduction portfolio management

noorulhadi Lecturer at Govt College of Management Sciences, noorulhadi99@yahoo.com
i have prepared these slides and still using in mylectures, Reference: Portfolio management by S kevin and online sources

Investment Management Risk and Return

This document discusses the relationship between risk and return in investments. It defines total risk as the sum of systematic and unsystematic risk. Systematic risk stems from external market factors that affect all investments, while unsystematic risk is specific to a particular company. The expected return and risk of individual stocks varies, with higher risk investments generally offering higher returns. A portfolio combines multiple assets to reduce overall risk through diversification. The portfolio risk depends on the covariance and correlation between the individual assets' returns. Diversifying across assets with low correlation is an effective way to reduce risk.

Investment management

This document provides an introduction to investment management. It defines investment as committing funds to achieve additional income or growth over time. Investments involve allocating assets, expecting positive returns, and having a long time frame. Investments can range from safe to risky. The objectives of investment include achieving good returns, reducing risk, liquidity, safety of funds, and hedging against inflation. Favorable factors for investment include legal safeguards, a stable currency, financial institutions and services, business organization structures, and choice of investment. The document outlines various investment media including direct, indirect, variable principal, and non-security investments. It also discusses features of an investment program such as safety, liquidity, income stability, and appreciation

Efficient market hypothesis

Efficient market hypothesis

Capital asset pricing model

Capital asset pricing model

Markowitz model

Markowitz model

capm theory

capm theory

Portfolio Evaluation and Revision

Portfolio Evaluation and Revision

Arbitrage pricing theory (apt)

Arbitrage pricing theory (apt)

Security Market Line

Security Market Line

Portfolio revision

Portfolio revision

Asset Pricing Models

Asset Pricing Models

RISK & RETURN

RISK & RETURN

Risk & return analysis

Risk & return analysis

Portfolio construction

Portfolio construction

Portfolio selection, markowitz model

Portfolio selection, markowitz model

Modern portfolio theory

Modern portfolio theory

fundamental analysis

fundamental analysis

Capital Asset Pricing Model - CAPM

Capital Asset Pricing Model - CAPM

CAPM

CAPM

Introduction portfolio management

Introduction portfolio management

Investment Management Risk and Return

Investment Management Risk and Return

Investment management

Investment management

Capital Asset Pricing Model

Capital Asset Pricing Model (CAPM)
A model that describes the relationship between risk and expected return. The general idea behind CAPM is that investors need to be compensated in two ways: time value of money & risk. The time value of money is represented by the risk-free (rf) rate in the formula and compensates the investors for placing money in any investment over a period of time. The other half of the formula represents risk and calculates the amount of compensation the investor needs for taking on additional risk. This is calculated by taking a risk gauge (beta) that compares the returns of the asset to the market over a period of time and to the market premium (Rm-rf).

The capital asset pricing model (capm)

The document discusses the Capital Asset Pricing Model (CAPM). It explains that CAPM provides a framework to determine the required rate of return on an asset based on its relationship to risk. It also discusses the model's assumptions and how beta is used to measure non-diversifiable risk. Further, it shows how CAPM is used to estimate the cost of equity capital and determine an investment's intrinsic value.

Capital asset pricing model

The Capital Asset Pricing Model (CAPM) was developed by William Sharpe in 1970 to calculate the expected return of an asset based on its risk. It distinguishes between systematic risk that cannot be diversified away, such as market risk, and unsystematic risk that can be reduced through diversification. The CAPM formula states that the expected return of an asset is equal to the risk-free rate plus a risk premium that is proportional to the asset's systematic risk or beta. Beta measures how volatile an asset's returns are relative to the overall market. The CAPM makes simplifying assumptions about investors and markets. While widely used, some argue it may not perfectly predict returns in practice.

SAPM lecture 3 Capital Asset Pricing Model

The document discusses the Capital Asset Pricing Model (CAPM) and how it relates expected return to risk through beta. It provides the formula for CAPM and explains how to calculate beta and expected returns for securities. Examples are given to demonstrate calculating betas and expected returns for companies using historical return data and CAPM. The model can be used to determine if securities are overvalued or undervalued relative to their expected returns given the market risk and risk-free rate.

Capm 1

The Capital Asset Pricing Model (CAPM) asserts that the expected return of an asset is determined by its sensitivity to non-diversifiable market risk, as measured by beta. Under CAPM, the expected return of an asset is equal to the risk-free rate plus a risk premium that is proportional to the asset's beta. CAPM provides a model for determining the cost of capital of an asset by relating the expected return of the asset to its risk compared to the market portfolio.

Return and risk the capital asset pricing model, asset pricing theories

This document discusses key concepts related to asset pricing models and portfolio risk. It provides examples to illustrate how to calculate the expected return, variance, and standard deviation of individual securities and portfolios. It also distinguishes between systematic and unsystematic risk, and explains how diversification reduces unsystematic risk but not systematic risk at the portfolio level. Overall, the document presents foundational concepts for understanding asset pricing theories and modeling portfolio risk.

5.capital asset pricing model

The document discusses several assumptions of portfolio theory models including CAPM and APT. It assumes investors have homogeneous expectations, are risk averse utility maximizers, and operate in a environment of perfect competition with no transaction costs. The key aspects of CAPM discussed are the efficient frontier and relationship between risk and return. APT relaxes some CAPM assumptions and focuses on factor sensitivities driving returns rather than just beta. Arbitrage pricing looks for riskless profit opportunities by making small adjustments to portfolio weights.

Capm

The document discusses the Capital Asset Pricing Model (CAPM). It defines systematic and unsystematic risk, the beta coefficient as a measure of systematic risk, and outlines the key assumptions and formula of CAPM. The Security Market Line (SML) graphs the relationship between risk and return predicted by CAPM. Some limitations of CAPM are that it assumes variance captures all risk and homogeneous investor expectations. Alternatives to CAPM discussed include Consumption CAPM, Intertemporal CAPM, and Arbitrage Pricing Theory.

Thesis ADJUSTING THE CAPITAL ASSET PRICING MODEL FOR THE SHORT-RUN WITH LIQUI...

This thesis explores adjusting the classic Capital Asset Pricing Model (CAPM) to incorporate short-term liquidity factors. Specifically, it proposes using the limit order book (LOB) as a proxy for short-term liquidity. It acknowledges that precise LOB data is unavailable to test the adjusted model. The thesis then discusses how modern trading conditions like high-frequency trading and dark pools impact the model and pricing. It also examines information operations concepts like deception that are increasingly relevant to asset pricing. The thesis considers alternative proxies and short-term return estimates beyond liquidity. It explores the efficient and adaptive market hypotheses in response to changing market dynamics. In conclusion, it offers policy recommendations for regulators regarding dark pools, high-frequency

Valuation of securities

The document contains 13 problems related to valuation of securities such as stocks and bonds. Key details include calculating stock prices given dividend growth rates, required rates of return, bond yields and prices given coupon rates and maturities. The problems require using concepts like present value, dividend discount model, yield to maturity and understanding how interest rate changes affect bond prices.

pricing theory and procedure, pricing policies and practices

This document discusses various pricing theories and methods. It begins by defining price and exploring the relationship between supply and demand under perfect competition. It then examines pricing under different market structures - monopoly, oligopoly and monopolistic competition. It describes key characteristics of each market type. Finally, it outlines several common pricing methods used by firms, including cost-plus pricing, marginal cost pricing, target return pricing, and pricing strategies for new products like price skimming and penetration pricing.

Capital Asset Pricing Model & Arbitrage Pricing Theory by i gede auditta

Presentate at Financial Management Class by igedeauditta@gmail.com

Capital Asset pricing model- lec6

Capital asset pricing model, risk return, beta, variance, standard deviation, assumption of model, implication of the model

A study on empherical testing of capital asset pricing model

This document is a project report submitted to the University of Mysore in partial fulfillment of an MBA degree. It examines the empirical testing of the Capital Asset Pricing Model (CAPM) conducted at Asit C. Mehta Investment Intermediates Ltd in Hassan, India between 2008-2010. The report includes an introduction to the topic, literature review, company and industry profiles, data collection and interpretation, findings, suggestions and conclusions. The student conducted the research under the guidance of their project guide.

Capm and apt

The document discusses the Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory (APT). It outlines the key assumptions and results of CAPM, including that all investors hold the market portfolio and the security market line relates individual security risk premiums to market risk premiums through beta. It also discusses limitations of CAPM and how multifactor models like Fama-French can better describe returns. Finally, it explains how APT allows for arbitrage opportunities if mispriced portfolios exist and its relationship to CAPM.

Portfolio theory and capm

Asset Pricing and Portfolio Theory
I have presented a unique analysis which showcases the concepts of Aggregate & Aggregate lending and the numerical aspects of CAPM theory

Valuation Of Securities

This document provides an overview of key concepts related to valuation of securities, including time value of money, simple vs compound interest, future and present value calculations for single amounts, annuities, and growing annuities. It also discusses bond valuation terminology, risks associated with bonds such as interest rate risk and default risk, and accrued interest calculations. The document uses examples throughout to illustrate various time value of money and bond valuation concepts.

Unit4 portfolio theory & CAPM

This document discusses portfolio theory and the Capital Asset Pricing Model (CAPM). It explains that diversification reduces risk through averaging effects. While specific risk can be diversified away, market risk cannot. Portfolio theory assumes investors are risk averse and seek the highest returns for a given level of risk. The CAPM uses beta to measure a stock's risk relative to the market and defines the security market line, where expected return is equal to the risk-free rate plus a risk premium based on beta. Stocks with beta greater than one are more volatile than the market.

Arbitrage pricing theory

Arbitrage is the practice of taking advantage of price differences between two or more markets. It involves striking a combination of deals to capitalize on imbalances, with the profit being the difference between the market prices. True arbitrage requires no negative cash flow and a positive cash flow in at least one state. It allows for a risk-free profit after transaction costs. However, in practice there are always some risks involved like minor price fluctuations reducing profits or major risks like currency devaluations. Arbitrageurs seek to exploit brief differences in price to earn small risk-free profits.

Valuation of securities

The document discusses various methods for valuing different types of securities like bonds, preference shares, and equity shares. It explains concepts like book value, market value, and intrinsic value. It provides formulas for calculating the present value of redeemable and irredeemable bonds and preference shares based on interest/dividend payments and redemption value. Methods for valuing equity shares include the dividend capitalization method using models for finite periods, constant dividend growth, and variable dividend growth as well as the earnings capitalization method.

Capital Asset Pricing Model

Capital Asset Pricing Model

The capital asset pricing model (capm)

The capital asset pricing model (capm)

Capital asset pricing model

Capital asset pricing model

SAPM lecture 3 Capital Asset Pricing Model

SAPM lecture 3 Capital Asset Pricing Model

Capm 1

Capm 1

Return and risk the capital asset pricing model, asset pricing theories

Return and risk the capital asset pricing model, asset pricing theories

5.capital asset pricing model

5.capital asset pricing model

Capm

Capm

Thesis ADJUSTING THE CAPITAL ASSET PRICING MODEL FOR THE SHORT-RUN WITH LIQUI...

Thesis ADJUSTING THE CAPITAL ASSET PRICING MODEL FOR THE SHORT-RUN WITH LIQUI...

Valuation of securities

Valuation of securities

pricing theory and procedure, pricing policies and practices

pricing theory and procedure, pricing policies and practices

Capital Asset Pricing Model & Arbitrage Pricing Theory by i gede auditta

Capital Asset Pricing Model & Arbitrage Pricing Theory by i gede auditta

Capital Asset pricing model- lec6

Capital Asset pricing model- lec6

A study on empherical testing of capital asset pricing model

A study on empherical testing of capital asset pricing model

Capm and apt

Capm and apt

Portfolio theory and capm

Portfolio theory and capm

Valuation Of Securities

Valuation Of Securities

Unit4 portfolio theory & CAPM

Unit4 portfolio theory & CAPM

Arbitrage pricing theory

Arbitrage pricing theory

Valuation of securities

Valuation of securities

CAPM

This document provides an overview of an upcoming presentation on asset pricing models. The presentation will cover capital market theory, the capital market line, security market line, capital asset pricing model, and diversification. It will discuss the assumptions and formulas for the capital market line and security market line. The capital market line shows expected returns based on portfolio risk, while the security market line shows expected individual asset returns based on systematic risk. The capital asset pricing model uses the concept of beta to calculate the expected return of an asset based on its risk relative to the market.

Risk measurement & efficient market hypothesis

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ARBITRAGE PRICING THEORY AND MULTIFACTOR MODELS.ppt

The Arbitrage Pricing Theory (APT) proposes that the expected return of a financial asset can be modeled as a linear function of various macroeconomic factors where sensitivity to changes in each factor is represented by a factor-specific beta coefficient. In contrast to the Capital Asset Pricing Model which relies on a single market factor, the APT allows for multiple common factors that influence asset returns. Empirical tests of the APT have been inconclusive due to difficulty in identifying a set of factors that consistently explains security returns.

Portfolio Valuation - CAPM-APT.ppt

The document discusses capital asset pricing theory and portfolio theory. It introduces key concepts such as the efficient frontier, which shows the set of portfolios with the highest expected return for a given level of risk. It also discusses the Capital Asset Pricing Model (CAPM), which proposes that the expected return of an asset is determined by its sensitivity to non-diversifiable risk (beta). The CAPM suggests relationships like the security market line and capital market line. However, the CAPM faces empirical criticisms and its assumptions do not always hold in the real world. Alternative models like the Arbitrage Pricing Theory were developed that allow for multiple factors to influence returns.

Presentation.pptx

Risk is an important consideration when holding a portfolio. There are two types of risks: systematic risks which affect the entire market and cannot be diversified away, and unsystematic risks which are unique to a company and can be reduced through diversification. The Capital Asset Pricing Model (CAPM) describes the relationship between risk and expected return, stating that the expected return of a security equals the risk-free rate plus a risk premium based on the security's beta, which measures its systematic risk relative to the market.

Security analysis

This slide discuss about the risk,return, CAPM, APT, Sharpe Ratio, Treynor Ratio, Fama decomposition etc. it has lots of charts for support.

IM_5.pptx

The document discusses portfolio management and the capital asset pricing model (CAPM). It covers key aspects of portfolio construction including diversification, risk and return analysis, and asset selection. It also explains key concepts of the CAPM such as the security market line (SML), capital market line (CML), beta, and the relationship between risk and expected return. The assumptions and limitations of the CAPM are also outlined.

Risk returns analysis

The document discusses the relationship between risk and return, known as the risk-return nexus. It defines key concepts like risk, return, systematic and unsystematic risk. It explains that total risk is comprised of systematic and unsystematic risk, but that unsystematic risk can be diversified away. The Capital Asset Pricing Model (CAPM) asserts that the expected return of an asset depends only on its systematic risk. Empirical analysis of CAPM shows strong correlation between market returns and the returns of various bonds, supporting the model.

APT portfolio mnagmnt

This ppt is direct make by rajesh katiyar from IBM csjmu kanpur under gidance of sruti mam...i am so glad upload in slideshare

Capital asset pricing model (CAPM)

The document provides an overview of the Capital Asset Pricing Model (CAPM). It defines key terms like the capital allocation line, capital market line, security market line, beta, and expected return. The capital allocation line shows the risk-return tradeoff for efficient portfolios. The capital market line depicts the risk-return relationship for efficient portfolios available to investors. The security market line is a graphic representation of CAPM that describes the market price of risk. CAPM holds that the expected return of an asset is determined by its beta, or non-diversifiable risk. It assumes investors will hold an efficient portfolio consisting of a risk-free asset and the market portfolio.

MODERN PORTFOLIO MANAGEMENT

This document provides an overview of modern portfolio theory and the Capital Asset Pricing Model (CAPM). It discusses key concepts like diversification, the market portfolio, and the relationship between risk and return. The CAPM, developed by William Sharpe, uses the market beta to determine the expected return of an asset based on its non-diversifiable risk. The document also briefly discusses the assumptions and elements of the CAPM, as well as the alpha and beta coefficients.

Measuring risk in investments

The document provides guidance on investment analysis and project selection. It discusses measuring risk and return, using hurdle rates that account for risk, and choosing projects that provide returns above the hurdle rate. The capital asset pricing model is introduced as a method to estimate expected returns based on beta and the risk premium. Diversification and the market portfolio concept are also covered.

An introduction to asset

what do you want to do is you can do, if only you are willing to do....right? business it not only for our own selves, but also for everybody good also.

Portfolio Risk & Return Part 2.pdf

The document discusses various models for analyzing portfolio risk and return, including the Capital Market Line (CML) and different types of return-generating models. It also covers the Capital Asset Pricing Model (CAPM) and its assumptions, the Security Market Line (SML), and techniques for evaluating portfolio performance such as the Sharpe Ratio and Treynor Ratio. The Fama-French three-factor model and Carhart four-factor model, which extend the CAPM, are also summarized.

Measuring risk

This document discusses various methods of measuring risk, including variance, standard deviation, skewness, kurtosis, and the components of risk such as project-specific risk, competitive risk, industry risk, market risk, and international risk. It then discusses the capital asset pricing model (CAPM) and how it uses beta to measure non-diversifiable risk and translate that into an expected return. The document provides an example of estimating beta for Disney stock.

L Pch10

The document provides an overview of the Capital Asset Pricing Model (CAPM). It defines key concepts such as systematic and non-systematic risk, the security market line, and beta. It also discusses how beta is estimated using regression analysis and the characteristic line. Empirical tests are often used to evaluate whether asset prices conform to the predictions of the CAPM.

Equity analysis valuation new notes

This document provides information on various topics related to equity analysis and valuation, including:
1. Preferred stocks have characteristics of both common stocks and bonds, with owners generally lacking voting rights and dividends being cumulative.
2. Foreign bonds are bonds issued in a domestic market denominated in domestic currency by non-resident entities.
3. Liquidity refers to the ability to buy and sell securities, with an actively traded security being one traded on 50% of market days.
4. Risk-return models like the CAPM establish relationships between required rates of return and systematic risk.

3.Risk & Rates of Return.pdf

The document discusses various concepts related to risk and rates of return in investments. It defines key terms like stand-alone risk, portfolio risk, diversifiable risk, market risk, beta coefficient, and capital asset pricing model (CAPM). It provides formulas to calculate expected returns, standard deviation, correlation, and portfolio risk. The CAPM suggests that a stock's expected return is determined by the risk-free rate and the stock's beta. The security market line shows the relationship between risk and return based on the CAPM. The capital market line represents optimal portfolios combining risk and return. The document also includes mathematical problems related to these concepts.

Capital Asset Pricing Model (CAPM) Model

The document discusses the Capital Asset Pricing Model (CAPM). It was developed by William Sharpe and John Linter based on Harry Markowitz's portfolio theory. CAPM assumes investors will select portfolios based on the risk-free rate and market return. It consists of a Capital Market Line relating risk and expected return for portfolios, and a Security Market Line relating risk and expected return for individual securities. The CAPM formula is the equation of the Security Market Line.

Capital Asset Pricing Model (CAPM).pptx

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CAPM

CAPM

Risk measurement & efficient market hypothesis

Risk measurement & efficient market hypothesis

ARBITRAGE PRICING THEORY AND MULTIFACTOR MODELS.ppt

ARBITRAGE PRICING THEORY AND MULTIFACTOR MODELS.ppt

Portfolio Valuation - CAPM-APT.ppt

Portfolio Valuation - CAPM-APT.ppt

Presentation.pptx

Presentation.pptx

Security analysis

Security analysis

IM_5.pptx

IM_5.pptx

Risk returns analysis

Risk returns analysis

APT portfolio mnagmnt

APT portfolio mnagmnt

Capital asset pricing model (CAPM)

Capital asset pricing model (CAPM)

MODERN PORTFOLIO MANAGEMENT

MODERN PORTFOLIO MANAGEMENT

Measuring risk in investments

Measuring risk in investments

An introduction to asset

An introduction to asset

Portfolio Risk & Return Part 2.pdf

Portfolio Risk & Return Part 2.pdf

Measuring risk

Measuring risk

L Pch10

L Pch10

Equity analysis valuation new notes

Equity analysis valuation new notes

3.Risk & Rates of Return.pdf

3.Risk & Rates of Return.pdf

Capital Asset Pricing Model (CAPM) Model

Capital Asset Pricing Model (CAPM) Model

Capital Asset Pricing Model (CAPM).pptx

Capital Asset Pricing Model (CAPM).pptx

Human resource management

This document discusses human resource management in a changing environment. It defines HRM as making productive use of human resources to benefit both organizations and individuals. The scope of HRM is vast and includes activities like planning, recruitment, training, performance reviews, compensation, and industrial relations. Factors like globalization, technology, and workforce diversity are changing the role of HR from administrative to more strategic. An HRIS uses technology to store and analyze HR information. The environment affecting HRM includes internal factors like organizational culture and external factors like economic conditions, laws, and sociocultural influences.

Communication barriers

Communication barriers can occur at various stages of the communication process, including formulation of the message by the sender, reception by the receiver, and interpretation. Some key barriers mentioned are: choosing an unsuitable medium, physical noise, time and distance limitations, semantic issues like different interpretations of words, abstracting or slanting of reality, personal attitudes/opinions, emotions, inattentiveness, faulty transmission of the message, and poor retention of information. Overcoming these barriers is important for ensuring effective communication.

Operations and competitiveness

This document provides an overview of operations management. It discusses key concepts like the transformation process, integrated value chains, and the evolution of operations management over time. Globalization and e-business are changing how operations function by impacting areas like supply chains, logistics, and customer expectations. Maintaining competitiveness requires improving productivity through efficiency gains and breakthroughs.

Introduction of cost and managerial accounting

Cost accounting is a formal system of accounting that records and controls costs of products and services. It differs from costing, which finds product costs, by using double-entry accounting. Cost accounting objectives include ascertaining costs, controlling costs, guiding business policy, determining selling prices, and measuring performance. It differs from financial accounting in purpose, statutory requirements, cost analysis periodicity, and control aspects. Cost accounting presents both historical and predetermined costs using various statements prepared from different transaction types. Management accounting helps efficiently conduct business through strategies, planning, decision making, resource optimization, and disclosure using cost accounting and financial accounting information.

Venture Capital

Venture capital is funding provided to startup companies and small businesses with perceived long-term growth potential. It involves three main actors: venture capital funds that manage money from investors, the investors who provide this money, and the entrepreneurial companies that receive the funding. There are typically five stages of venture capital funding as a company grows from an idea to commercialization to expansion. Venture capital carries high risk but also high potential returns and has played an important role in economic growth and job creation.

Marketing applications of reference group, family and culture

The document discusses several factors that influence consumer behavior, including reference groups, family and culture. It defines reference groups as individuals or groups that serve as a point of comparison and influence evaluations, aspirations, and behaviors. Reference groups can include family, friends, and celebrities. Family and culture also shape consumer decisions. Culture refers to shared values, norms, and beliefs passed down through generations that impact tastes and preferences. Subcultures within a culture may differ based on attributes like ethnicity, age, religion, and location. Social classes and groups further influence consumer norms and status. Marketers study these factors to understand consumer decision-making.

Advertising and sales promotions

The document discusses various aspects of advertising and sales promotion. It defines different types of marketing communications including advertising, sales promotion, public relations, direct marketing, and personal selling. It then covers why advertising is used, common sources for different types of advertising and sales promotion, and characteristics of each approach. The document also discusses product advertising, comparative advertising, reminder advertising, retail advertising, co-operative advertising, and institutional advertising. It concludes by reviewing factors to consider for media selection and advantages and disadvantages of various media channels.

Financial regulations

The Securities and Exchange Board of India (SEBI) was established in 1988 and given statutory powers through the SEBI Act of 1992. It is the regulatory body for securities markets in India, with a mandate to protect investors and ensure the development and regulation of markets. SEBI is managed by a board of members appointed by the Indian government. It is headquartered in Mumbai and has regional offices across India. The purpose of SEBI is to maintain stable and efficient markets through the creation and enforcement of regulations.

Introduction to Retailing management

Retailing involves selling goods and services to consumers in small quantities. It serves several functions like deciding on product assortments, breaking bulk, display, inventory holding and additional services. Special characteristics of retailing include the retailer's strategy. There are various types of retailers worldwide like independent, chain, franchised and consumer cooperatives that offer different merchandise through stores like convenience stores, supermarkets, hypermarkets and more. Technology plays a key role in retailing by enabling integrated systems, networking, electronic data interchange, bar-coding, electronic article surveillance and electronic shelf labels to help control inventory and make merchandising decisions across multiple retail outlets.

Internet marketing

This document discusses internet marketing and its advantages over traditional marketing. It outlines key internet marketing mediums like search engine marketing, pay per click marketing, and social media marketing. While internet marketing allows global reach and easy measurement of results, it also has limitations like difficulty creating brand awareness and fully convincing consumers. Overall, the document promotes internet marketing as a powerful tool for businesses.

Managing family own business

This presentation is all about different factors affecting family business and SWOT analysis of family business.

Consumer promotion

Consumer promotions are marketing tactics used to stimulate demand for a product through limited-time offers like discounts, free samples, or bonuses. The goals are to attract new customers, encourage brand switching, clear inventory, or combat competitors. Common types include coupons, discounts, free trials, buy-one-get-one deals, rebates, and contests. Promotions target both consumers directly with tactics like samples, and retailers to gain shelf space through trade deals. An integrated marketing communications approach coordinates different promotional tools with advertising.

industrial analysis report of Consumer durables and Sony enterprise

This PPT gives basic idea about market of consumer durables in India. It provides information about performance of Sony enterprise in Market.

Human resource management

Human resource management

Communication barriers

Communication barriers

Operations and competitiveness

Operations and competitiveness

Introduction of cost and managerial accounting

Introduction of cost and managerial accounting

Venture Capital

Venture Capital

Marketing applications of reference group, family and culture

Marketing applications of reference group, family and culture

Advertising and sales promotions

Advertising and sales promotions

Financial regulations

Financial regulations

Introduction to Retailing management

Introduction to Retailing management

Internet marketing

Internet marketing

Managing family own business

Managing family own business

Consumer promotion

Consumer promotion

industrial analysis report of Consumer durables and Sony enterprise

industrial analysis report of Consumer durables and Sony enterprise

HYPERTENSION - SLIDE SHARE PRESENTATION.

IT WILL BE HELPFULL FOR THE NUSING STUDENTS
IT FOCUSED ON MEDICAL MANAGEMENT AND NURSING MANAGEMENT.
HIGHLIGHTS ON HEALTH EDUCATION.

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Best for u

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Practical manual for National Examination Council, Nigeria.
Contains guides on answering questions on the specimens provided

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In this webinar, participants learned how to utilize Generative AI to streamline operations and elevate member engagement. Amazon Web Service experts provided a customer specific use cases and dived into low/no-code tools that are quick and easy to deploy through Amazon Web Service (AWS.)

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https://app.box.com/s/qhtvq32h4ybf9t49ku85x0n3xl4jhr15Gender and Mental Health - Counselling and Family Therapy Applications and In...

A proprietary approach developed by bringing together the best of learning theories from Psychology, design principles from the world of visualization, and pedagogical methods from over a decade of training experience, that enables you to: Learn better, faster!

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(𝐓𝐋𝐄 𝟏𝟎𝟎) (𝐋𝐞𝐬𝐬𝐨𝐧 𝟏)-𝐏𝐫𝐞𝐥𝐢𝐦𝐬
𝐃𝐢𝐬𝐜𝐮𝐬𝐬 𝐭𝐡𝐞 𝐄𝐏𝐏 𝐂𝐮𝐫𝐫𝐢𝐜𝐮𝐥𝐮𝐦 𝐢𝐧 𝐭𝐡𝐞 𝐏𝐡𝐢𝐥𝐢𝐩𝐩𝐢𝐧𝐞𝐬:
- Understand the goals and objectives of the Edukasyong Pantahanan at Pangkabuhayan (EPP) curriculum, recognizing its importance in fostering practical life skills and values among students. Students will also be able to identify the key components and subjects covered, such as agriculture, home economics, industrial arts, and information and communication technology.
𝐄𝐱𝐩𝐥𝐚𝐢𝐧 𝐭𝐡𝐞 𝐍𝐚𝐭𝐮𝐫𝐞 𝐚𝐧𝐝 𝐒𝐜𝐨𝐩𝐞 𝐨𝐟 𝐚𝐧 𝐄𝐧𝐭𝐫𝐞𝐩𝐫𝐞𝐧𝐞𝐮𝐫:
-Define entrepreneurship, distinguishing it from general business activities by emphasizing its focus on innovation, risk-taking, and value creation. Students will describe the characteristics and traits of successful entrepreneurs, including their roles and responsibilities, and discuss the broader economic and social impacts of entrepreneurial activities on both local and global scales.

skeleton System.pdf (skeleton system wow)

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تتميز هذهِ الملزمة بعِدة مُميزات :
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The History of NZ 1870-1900.
Making of a Nation.
From the NZ Wars to Liberals,
Richard Seddon, George Grey,
Social Laboratory, New Zealand,
Confiscations, Kotahitanga, Kingitanga, Parliament, Suffrage, Repudiation, Economic Change, Agriculture, Gold Mining, Timber, Flax, Sheep, Dairying,

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Wound healing PPT

This document provides an overview of wound healing, its functions, stages, mechanisms, factors affecting it, and complications.
A wound is a break in the integrity of the skin or tissues, which may be associated with disruption of the structure and function.
Healing is the body’s response to injury in an attempt to restore normal structure and functions.
Healing can occur in two ways: Regeneration and Repair
There are 4 phases of wound healing: hemostasis, inflammation, proliferation, and remodeling. This document also describes the mechanism of wound healing. Factors that affect healing include infection, uncontrolled diabetes, poor nutrition, age, anemia, the presence of foreign bodies, etc.
Complications of wound healing like infection, hyperpigmentation of scar, contractures, and keloid formation.

HYPERTENSION - SLIDE SHARE PRESENTATION.

HYPERTENSION - SLIDE SHARE PRESENTATION.

Pharmaceutics Pharmaceuticals best of brub

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Wound healing PPT

- 3. Introduced by Jack Trevnor, William Sharpe, John Linter, and Jan Mossin CAPM is a model which is used to describe how securities are priced in the marketplace It has its roots in Markowitz model
- 5. 1. The investor’s objective is to maximize the utility of the terminal wealth 2. Investors make choices on the basis of “risk and return” 3. Investors have homogeneous expectations of “risk and return”
- 6. 4. Investors have identical time horizon 5. Information is freely and simultaneously available to investors
- 7. 6. There is a risk-free asset, and investors can borrow and lend unlimited amounts at the risk-free rate 7. There are no taxes, transaction costs, restrictions on short rates, or other market imperfections 8. Total asset quantity is fixed, and all assets are marketable and divisible
- 9. CAPITAL MARKET LINE The capital market state that there is a risk free rate that is provided by security. i.e. zero risk. This is also the rate available to all investors in the market, at which they can borrow or lend any amount in the market.
- 10. Conti… Relation between the total risk and the Return expected from the securities. . . R = rf + (rm – rf ) j M It represents the efficient set of portfolios formed form the both risky and risk free assets It represents the relationship between the Returns of the portfolio and standard deviation
- 11. Pictorial Result of CAPM E(Ri) E(RM) Rf Capital Market Line = 1.0
- 12. Any investor can achieve the point along the straight line (CML) by combining the proportion of risky security(M) and risk-free rate. Any point which is bellow or above the CML is not optimal. The investor, instead of investing in a portfolio below the point M, can always go for higher point of return for the same risk level on the CML.
- 13. SECURITY MARKET LINE 1. It is graphical presentation of CAPM 2. After diversification only systematic risk remains in the portfolio 3. So the return of the portfolio should depend only on the systematic risk i.e. On beta
- 14. Security Market Line (SML) Graphically shows relationship between market risk and required rate of return
- 15. Slope of SML The slope of the SML reflects investors’ degree of Risk Aversion. When slope is steep (high market price of risk, high required rates of return), this indicates that investors are nervous (worried, concerned) about investing in the stock market and want higher returns on every stock.
- 16. The required rate of return on a security depends on the risk free rate the “beta” of the security, and the market price of risk. The required return is a linear function of the beta coefficient. All else being the same, higher the beta coefficient, higher is the required return on the security.
- 17. ESTIMATING RISK FREE RATE The risk free rate (T) is the least discussed of the CAPM factors. Whether in academic research or in practical applications of the CAPM the 90 days treasury bill rate has been virtually the only proxy used for the risk free assets.
- 18. PRACTICAL PROBLEMS WITH USING THE TREASURY BILL RATE
- 19. 1. CENTRAL BANK INTERVENTION Choosing the treasury bill rate is not a pure market rate. These rates are influenced by: • Interest rate control • Controlling the money supply Action of the central bank certainly affect bond & equity prices & thus their yields.
- 20. 2. SHORT TERM RATE VOLATILITY Short term treasury securities show significant variability over time. When the rates of return are calculated over longer periods of time, the variability between periods is quite dramatic. This variability could come from either of the two components of the risk free rates: • The nominal rate of return • The return to compensate for expected inflation
- 21. 3.THE TREASURY RATE & MINIMUM RATE OF RETURN Although treasury bill rates are volatile, they may still provide an adequate proxy (T). The model’s theoretical predictions & the actual rates using treasury bill securities for the same or the following period are quite different.
- 23. Many practitioners estimate future market returns in much the same way that they estimate beta. Consequently, these practitioners assume that the past is an adequate mirror of the investors’ expected market premium. ESTIMATING THE MARKET RETURN
- 24. We have to discuss four of the questions that analysts must answer in the process of estimating the market’s rate of return
- 25. 1. CALCULATING SIMPLE OR COMPOUND RETURNS There are two techniques used for calculating returns: -Simple (arithmetic) averages - Compound (geometric) averages Q.1 How should the return be calculated?
- 26. If the average investor rebalanced his portfolio every period, the geometric mean would not be correct representation of his portfolio’s performance over time. The arithmetic mean would provide better measure of typical performance over time.
- 27. 2. CALCULATING VALUE OR EQUALLY WEIGHTED RETURNS In value-weighted index, where each return in the indices weighted by the market value of the stock. In equally weighted index, the returns are simply averaged. Q.2 If an index is used, should it be value-or-equal- weighted?
- 28. 3. TIME PERIOD In implementing the CAPM, many contend that investors view the market return as a long term concept. This suggests that investors opinion about individual assets may change, but that the expected market returns show long term stability. Q.3 Over what period should the return be calculated?
- 29. Yet it has been well documented that certain periods of history have greater impact on individuals than do other periods. The period chosen reflects our best judgment of the period of history that will mostly resemble the market that we expect over the investors horizon.
- 30. 4. MARKET PROXY There are number of indices which can be used as proxy for the market. It is difficult and probably impossible to know whether an index is an adequate proxy for the unknown world. Furthermore, since each index is composed of different kinds of stocks, the return can be, and should be, quite different. Q.4 What proxy should be used for the market?
- 32. ßeta is the share’s sensitivity to market movement. It indicates how much the scrip moves for a unit change in the market index. Source: Business Standard
- 33. Type of risks : Unsystematic Risk Systematic Risk Beta is necessary for systematic risk.
- 34. Variance (Rm)= the uncertainty attached to economic events Covariance (Ri, Rm)= the responsiveness of an asset’s rate of return (Ri) to those things that also change the market’s rate of return (Rm) i= investment , m= market (Rm)Variance Rm)(Ri,Covariance βi
- 35. Co-efficient of Correlation Co-efficient of Regression Standard Deviation
- 36. How to Calculate ßeta ?
- 37. Date Nifty % Change RIL % Change 26/8/13 5476.50 - 822.60 - 29/8/13 5409.5 -1.22% 845.25 2.75% 30/8/13 5471.80 1.15% 853.85 1.02% 2/09/13 5550.75 1.44% 886.75 3.85% Diff 26 &2 1.36% 7.80%
- 38. INDEX (X-x̄) (X-x̄)² RIL (Y-¥) (Y-¥)² (X-x̄) (Y- ¥) X x x² Y y y² xy -1.22 -1.68 2.82 2.75 0.21 0.04 0.35 1.15 0.69 0.48 1.02 -1.52 2.31 -1.05 1.44 0.98 0.96 3.85 1.31 1.72 1.28 1.36 0.00 4.26 7.80 0.00 0.58 x̄ ¥ 0.46 2.54
- 41. Suppose on Sunday (Dt. 9/9/2013) we decided to invest in 60 shares by hedging it with nifty futures on the Monday. How will we invest risk free? Ans: Ril Investment = 886.75*60*0.14 (β)/ 5550.75 = 7448.7/5550.75 = 1.34 Henceforth we will invest (short) in a lot of nifty future (lot size 50 shares)
- 43. Alpha is the excess return of stock above the risk- adjusted market return, given its level of risk as measured by beta. A positive alpha of 1.0 means the fund has outperformed its benchmark index by 1%. A negative alpha would indicate an underperformance of 1%.
- 44. Alpha is also known as Jensen Index. (Jensen Index is an index that compares the performance of investment managers by allowing for portfolio risk.) α < 0 (the investment has earned too little for its risk (or, was too risky for the return) α = 0 (the investment has earned a return adequate for the risk taken) α > 0 (the investment has a return in excess of the reward for the assumed risk)
- 46. Alpha= (aoy/n) – {Beta x (aox/n)} Where, x is ao (sum) of daily index return y is ao (sum) of daily stock return Source: Business Standard
- 47. Date Nifty % Change RIL % Change 26/8/13 5476.50 - 822.60 - 29/8/13 5409.5 -1.22% 845.25 2.75% 30/8/13 5471.80 1.15% 853.85 1.02% 2/09/13 5550.75 1.44% 886.75 3.85% Diff 26 &2 1.36% 7.80%
- 48. Suppose , we have invested in the stock of RIL and Nifty future by the closing prices of 26/8/2013 and exited the investment by the closing prices of 2/9/2013, then what would be alpha? (considering that previous beta of RIL is same as calculated of current month) Ans: = (1.36/3) - {0.14(7.80/3)} = 0.45-0.364 = 0.09 alpha of RIL
- 49. This formula is called the Capital Asset Pricing Model (CAPM) )(β FMiFi RRRR • Assume i = 0, then the expected return is RF. • Assume i = 1, then Mi RR Expected return on a security = Risk- free rate + Beta of the security Market risk premium