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Explain the concept of the Sharpe performance measure.Answer: The Sharpe performance measure abbreviated as SHP is a risk-adjusted performance measure. It is denoted as the mean excess return to a portfolio higher than the risk-free rate dividedvia the portfolio’s standard deviation.
Q. Show Maximum opportunity cost? If Marton hedges all its awaited dollar income over the next year at US$1.55: £l this will make guaranteed (ignoring other sources of risk) st
The issuers of ALBS are the financial subsidiaries of automobile manufacturers, commercial banks and other independent finance companies and small financial insti
Working and function of stock exchange
Franchise (licensing) - Granting or licensing of the right to use systems, expertise,brandsknow how etc. to another organisation, generally in return for a profit share
Directional Strategies : Strategies in this category involve buying or/and selling securities or financial instruments that the markets believe to be significantly overpriced or un
The equity accounts for Hexagon International are as follows: a. If Hexagon stock currently sells for $50 per share and a 20% stock dividend is declared, how many new s
The issuer offers bonds with an option to the investor to convert these bonds into equity shares at a pre-fixed ratio. These can be fully convertible bonds or partly co
Corporation - Form of doing business pursuant to a charter granted by a state or federal government. Corporations mainly are characterized by the issuance of freely transferable CA
Telephone service costs the Eggleston Motor Hotel $250 per week. The business pays its phone service bill on the fifteenth day of each month, but it prepares its financial statemen
We can measure the convexity with the help of following formula: ...Eq. (4) Where, Δ
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