Risk free assets, Risk Management

Assignment Help:

Risk free assets is one for which there is no uncertainty in its expected rate of return and hence the standard deviation of such return is zero. Generally the expected rate of risk free assets is expected to be equal to the return that one can get either from government. bonds of terms deposit with the commercial bank.

If risk free assets are include in a portfolio risk assets it is expected that the risk profile are expected to change as ell the shape of market. if we consider a two asset case the portfolio return is simply the weighted average rate of return of two assets.


Related Discussions:- Risk free assets

Historical simulation approach, How can I calculate 10-day 99% VaR for port...

How can I calculate 10-day 99% VaR for portfolio comprising two banks by using the Historical Simulation Approach ?

Report of the audit committee , Determine any qualitative factors or inform...

Determine any qualitative factors or information in the annual reports and accounts for Home Retail Group plc for 2011, containing the report if the audit committee, that you as th

What is a safe system of work, Question 1: Employers should conduct pro...

Question 1: Employers should conduct proper health risk assessment in order to identify and control health risks before they lead to losses. Describe the four stages involved i

Hi, ashjadsgdjhs

ashjadsgdjhs

Hedgeable risks, what are the characteristics of hedgeable risks

what are the characteristics of hedgeable risks

Determine the measurement of risk, Determine the Measurement of Risk ...

Determine the Measurement of Risk There are three methods: (1) Volatility: Volatility may be described as range of movement (or price fluctuation) from the expected lev

Beta, #queThe management of Nelson plc wish to estimate their firm’s equity...

#queThe management of Nelson plc wish to estimate their firm’s equity beta. Nelson has had a stock market quotation for only two months and the financial management feels that it w

Write Your Message!

Captcha
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