Markets are efficient-benefit to active management

Assignment Help Financial Management

Reference no: EM131940682

If markets are efficient, is there any benefit to active management? Explain

yesterday, the Dow Jones industrials gained 54 points. However, 1,704 issues declined in price while 1,367 advanced. Why might a technical analyst be concerned even though the market index rose on this day?

Consider a Treasury bill with a rate of return of 5% and the following risky securities:

Security A: E(r) = .15; standard deviation = ..2000

Security B: E(r) = .10; standard deviation = .1500

Security C: E(r) = .12; standard deviation = .3160

Security D: E(r) = .13; standard deviation = .2500

If you were going to form a complete portfolio consisting of the risk free asset and one risky asset from above, which risky asset would you choose.

Reference no: EM131940682

Questions Cloud

Explain the developmental perspectives : Describe some research findings and/or developmental perspectives regarding the development of "self" over time. How might you use this information.

Two species of bivalve-eating starfish : For their field project on the effects of competition a pair of ecology students studied two species of bivalve-eating starfish, the Newman Star

What is the data pattern represented by waveform a : Examine Waveform A in the following figure. This waveform represents the output of a transmitter using PAM with raised cosine pulse shaping.

What you have learned throughout the given experience : Brief summary of what you have learned throughout this experience and how it relates to your unique college experience.

Markets are efficient-benefit to active management : If markets are efficient, is there any benefit to active management? Explain

What is the action of the biceps brachii muscle : Based on your results from exercise 2, what is the action of the biceps brachii muscle? What are its origins and insertions? What is the explanation for this?

Private health insurance market on behalf of such individual : Why might the government need to intervene in the private health insurance market on behalf of such individuals? Explain.

Discuss the differences in the ability of the instrument : A summary of your research findings, paying particular attention to differences in the ability of the instrument to differentiate diagnostically between.

What is the history of abortions in the us : How did it develop in history. For example, what is the history of abortions in the US? How did the Affordable Care Act get developed and become law?

User Account

All Pages