How could the standard deviation statistic be modified

Assignment Help Portfolio Management
Reference no: EM13923498

Discuss the difficulties that having options in a security portfolio create for the measurement of portfolio risk. Specifically, explain why standard deviation is a deficient statistic for capturing the essence of risk in a put-protected portfolio. How could the standard deviation statistic be modified to account for this concern?

Reference no: EM13923498

Questions Cloud

How business intelligence will lead to efficient decision : An Assessment of how Business Intelligence will lead to more efficient decision making in a Mauritian Telecommunication firm: A case study at Emtel Ltd.
Necessary to choose appropriate data types : Think of a situation where null value should be allowed and a situation where it should not be allowed. What are the consequences of inappropriate null settings?
Calculating the value of uncertain outcomes : Where you are calculating the value of uncertain outcomes (probability nodes on the diagram), do this by multiplying the value of the outcomes by their probability. The total for that node of the tree is the total of these values.
Develop an interpretation of the descriptive statistics : Create a Microsoft® Excel® spreadsheet with the two variables from your learning team's dataset. Analyze the data with MegaStat®, StatCrunch®, Microsoft® Excel®or other statistical tool(s), including: (a) Descriptive stats for each numeric variable (..
How could the standard deviation statistic be modified : Explain why standard deviation is a deficient statistic for capturing the essence of risk in a put-protected portfolio. How could the standard deviation statistic be modified to account for this concern?
Database environment within your workplace : Choose a database environment from the following: An appropriate database environment within your workplace (must be approved by your instructor)
How an investor could create an off- market long position : explain how an investor could create an "off- market" long position in a forward contract at an exercise price of $25.
Nickerson corporation began operations : Nickerson Corporation began operations in 2013. There have been no permanent or temporary differences to account for since the inception of the business.
Highlighting the concerns of the stakeholders : This paper will discuss the stakeholders, strategies to support the schools board's need to redraw boundaries, while highlighting the concerns of the stakeholders and speak to the ethical and cultural affects of this decision.

Reviews

Write a Review

Portfolio Management Questions & Answers

  Portfolio analysis

The stock with the lowest beta (0.76) is Apple Inc. stock. The stock with the highest beta (3.29) is Facebook Inc. stock. Beta for Apple Inc. stock is less that 1, it tells us that stock price is less volatile and risky than mark..

  Provide investment portfolio advice

Provide investment portfolio advice and management to a client.

  Evaluate total number of shares

EBV proposes to structure the investment as 5m shares of CP with FV of $5m, one-to one conversion to common, and no dividends. Total Valuation Estimated from Newco.

  Role of the imf and world bank

Economic and territorial logic of empire are not always aligned. Explain his argument in light of the role of the IMF and World Bank as forms of neo imperialism.

  Prepare a portfolio of stocks

Prepare a portfolio of stocks

  Which critically examines the benefits and risks to company

Which critically examines the benefits and risks to a company, of incorporating corporate debt into a portfolio of equity and debt.

  Compute the variance-covariance matrix

Compute the sample mean, variance, and standard deviation of these shares and compute the variance-covariance matrix V and Plot the daily share prices and daily returns for each individual asset.

  Net nominal rate of interest and net real rate of interest

What bank portfolio can guarantee the rate of return 1 to all type 1 people and the rate of return 1.2 to all type 2 people? How many goods are placed in storage? In capital?

  Right issue to improve financial status

If you are the CEO of a British company that now faces the loss of a lucrative contract in Malaysia because of the dispute. What action should you take and How do you think British government should respond to the Malaysian action?

  Calculate the cost of reinvested profits

Calculate the cost of reinvested profits and the cost of new common shares using the constant-growth DVM - Cost of reinvested profits versus new common shares-DVM

  Calculate the after-tax cost of debt

Cost of debt For each of the following bonds, calculate the after-tax cost of debt. Assume the coupons are paid semi-annually, that the tax rate is 40 percent, and that we are dealing with $1,000 of par value.

  Calculate the overall cost of capital for cartwell products

Calculate the overall cost of capital for Cartwell Products. Which projects should the firm select? Does your answer differ from your answer topart d? If so, explain why.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd