Design portfolio with variance equal to zero

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Reference no: EM131911813

a. The fundamental notion of present value says that any weight that is charged in the future, today is worth less, because its immediate availability has a cost.

b. The alternative valuation of the shares through the Price Earning, is also affected by the rate of inflation, risk and growth.

c. If the growth rate is very variable, the dividend valuation model is irrelevant.

d. Is it possible to design a portfolio (portfolio) with variance equal to zero? What would be the requirements?

e. Would you accept a lower return on the Risk-Free Rate for investing in an action with negative Beta?

Reference no: EM131911813

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