For this question:
Steve is more risk-averse than Edie. On a graph that shows Steve and Edie's indifference curves, which of the following is true? Assume that the graph shows expected return on the vertical axis and standard deviation on the horizontal axis.
and here are the answers (both...
For this question:
In the mean-standard devidation graph, which one of the following statements is true regarding the indifference curve of a risk-averse investor?
c) It is the combination of portfolios that offer the same utility according to returns and standard deviations.
d) it is the...
I know that you can move ALONG the line either by borrowing or lending at the risk free rate.
But how do you SHIFT the line (i.e. move the curve up or down the graph)??
studymon,
during our first ACCT quizz for the semester, i had to decide whether the following statement was true or false:
'All direct costs are manufacturing costs'
...i decided that it was true, but later i found out that it was false...
so then, what kinds of direct costs are non-manufacturing...
i get what you are saying, but i dont understand why 'the touching point is when the weighting of the riskless asset is 0%'....i thought the tangency portfolio consisted of a portion of risky and risk-free assets..............isnt it?
edit: actually...i get that now!!
In the textbook it says that:
The optimal risky portfolio of all investors is simply a share of the market porfolio.
i dont get why and how this can be...what is the market portfolio?...could someone please explain?
and is the tangency portfolio the market porfolio? OR is the tangency...
I get how if 'you sell short 100 shares of company A at a market price of $45 per share' that your 'maximum possible loss will be UNLIMITED'.
But how about 'possible gains'? ...is that limited to $4500?
can you possibly have shares that are NEGATIVELY PRICED?
studymon,
Im having a bit of a difficulty understanding why this question is calculated as such...ive found the answer, but i dont understand the formula.
Here is the question:
Assume you sold short 100 shares of common stock at $50 per share. The initial margin is 60%. What would be the maintanence...
hi there,
im going into 2nd year commerce and am thinking of doing CA..
i know there are the six steps to becoming a chartered accountant:
For Australian students:
Choose an approved university business or commerce degree
Choose an accounting major
Complete the degree
Work in a Chartered...