Ebook Fundamentals of investments valuation and management (7th edition): Part 2
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: Ebook Fundamentals of investments valuation and management (7th edition): Part 2
Ebook Fundamentals of investments valuation and management (7th edition): Part 2
Diversification and RiskyAssetAllocation"It is the part of a wise man not to venture all his eggs tn one bask-Miguel de CervantesLearning ObjectivesIn Ebook Fundamentals of investments valuation and management (7th edition): Part 2ntuitively, we all know that diversification is important for managing investmen risk. But how exactly does diversification work, and how can we be sure we have anTo get the most out of this chapter, diversify your study time across:1How to calculate expected returns and variances for a security2How Ebook Fundamentals of investments valuation and management (7th edition): Part 2 to calculate expected returns and variances for a portfolio.3The importance of portfolio diversification4The efficient frontier and the importance ofEbook Fundamentals of investments valuation and management (7th edition): Part 2
asset allocation.efficiently diversified portfolio? Insightful answers can be gleaned from the modern theory of diversification and asset allocation.Diversification and RiskyAssetAllocation"It is the part of a wise man not to venture all his eggs tn one bask-Miguel de CervantesLearning ObjectivesIn Ebook Fundamentals of investments valuation and management (7th edition): Part 2rtant. After all. Don Cervantes's advice against "putting all your eggs in one basket” has become a bit of folk wisdom that seems to have stood the test of time quite well. Even so, the importance of diversification has not always been well understood. Diversification is important because portfolios Ebook Fundamentals of investments valuation and management (7th edition): Part 2 with many investments usually produce a more consistent and stable total return than portfolios with justone investment. When you own many stocks, evEbook Fundamentals of investments valuation and management (7th edition): Part 2
en if some of them decline in price, others are likely to increase in price (or Slay at the same price).CFA'" Exam Topics in This Chapter:1Discounted Diversification and RiskyAssetAllocation"It is the part of a wise man not to venture all his eggs tn one bask-Miguel de CervantesLearning ObjectivesIn Ebook Fundamentals of investments valuation and management (7th edition): Part 212)5Portfolio risk and return—Part I (LI, $12)6Basics of portfolio planning and construction (LI, 512)7Portfolio concepts (L2, s 18)8Asset allocation (L3, $8)Go to WWW mhhe.com/jmd7e for a guide that aligns your textbook with CFA readings11.1WWWSee how traders attempt to profit from expected returns Ebook Fundamentals of investments valuation and management (7th edition): Part 2 at www.earningswtrispers comexpected returnAverage retim on a risky asset expected in tire futureYou might be thinking that a portfolio with only oneEbook Fundamentals of investments valuation and management (7th edition): Part 2
investment could do very well if you pick the right solitary investment. Indeed, had you decided to hold only Dell stock during the I'M Is or shares Diversification and RiskyAssetAllocation"It is the part of a wise man not to venture all his eggs tn one bask-Miguel de CervantesLearning ObjectivesIn Ebook Fundamentals of investments valuation and management (7th edition): Part 2t will be very profitable in the future?That's the problem. If you pick the wrong one. you could get wiped out. Knowing which investment will perform the best in the future is impossible. Obviously, if we knew, then there would be no risk. Therefore, investment risk plays an important role in portfo Ebook Fundamentals of investments valuation and management (7th edition): Part 2lio diversification.The role and impact of diversification on portfolio risk and return were first formally explained in the early 1950s by financialEbook Fundamentals of investments valuation and management (7th edition): Part 2
pioneer Hany Markowitz. These aspects of portfolio diversification were an important discovery—Professor Markowitz, shared the 1986 Nobel Prize in EcoDiversification and RiskyAssetAllocation"It is the part of a wise man not to venture all his eggs tn one bask-Miguel de CervantesLearning ObjectivesIn Ebook Fundamentals of investments valuation and management (7th edition): Part 2or return. In fact, we can talk about the benefits of diversification without having to know how investors feel about risk. Realistically, however, it is investors who care about the benefits of diversification. Therefore, to help you understand Professor Markowitz's insights, we make two assumption Ebook Fundamentals of investments valuation and management (7th edition): Part 2s. First, we assume that investors prefer more return to less return, and second, we assume that investors prefer less risk to more risk. In this chapEbook Fundamentals of investments valuation and management (7th edition): Part 2
ter, variance and standard deviation are measures of risk.Expected Returns and VariancesIn Chapter 1. we discussed how to calculate average returns anDiversification and RiskyAssetAllocation"It is the part of a wise man not to venture all his eggs tn one bask-Miguel de CervantesLearning ObjectivesIn Ebook Fundamentals of investments valuation and management (7th edition): Part 2ns future returns and their probabilities. We start here because the notion of diversification involves future returns and variances of future returns.EXPECTED RETURNS Ebook Fundamentals of investments valuation and management (7th edition): Part 2Diversification and RiskyAssetAllocation"It is the part of a wise man not to venture all his eggs tn one bask-Miguel de CervantesLearning ObjectivesInGọi ngay
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