0
What Portfolio is located on the capital market line to the left of the market portfolio?
Wiki User
∙ 12y ago
a portfolio with a long position in risk free assest
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
What is capital market line?
It is discussed in efficient market hypothesis, meaning that you can not beat the market. Capital market line is drawn as a tangent on the curve representing both risky and non risky portfolio. At the point where tangent is drawn represents a model portfolio akin to market. All portfolio above this point has a higher risk reward ratio.
Is a diversified portfolio with a beta of 2 twice as volatile as the market portfolio?
Yes. That's what it means. The "beta of 2" is a comparison to the market portfolio. The volatility measure is usually annualized standard deviation and the "market portfolio" is commonly the S&P 500 Index, but should be a broad index that is similar to the securities in the portfolio. The market portfolio used for a portfolio of international securities could be the MSCI EAFE Index, for example.
What are the differences between capital allocation line CAL and capital market line CML?
CML = CAL for the entire market, assuming everyone has the same mean variance expectations ( E(R), variances, correlations). CAL is just the CML for individual investors. CAL and CML both combine the risk free asset with the optimal portfolio, only with CML that optimal portfolio is the market portfolio (tangency point of CML).
What does the tangency point M represent in the Capital Market Line?
The tangency point M represents the optimal portfolio on the efficient frontier that is a combination of the risk-free asset and the risky portfolio with the highest Sharpe ratio. It represents the portfolio that maximizes the risk-adjusted return, providing the best trade-off between risk and return for an investor.
Why portfolio theory apply in current financial market?
Like the best portfolio theory for today's market is based on the Dynamic Market Environment theory.
Define the term product portfolio?
A product portfolio refers to a collection of all the products or services offered by a company. It includes all the variations of products, their brands, and any associated services. Having a diverse product portfolio enables a company to cater to different market segments and reduce risk by not being overly reliant on a single product.
What is the market cap for PowerShares Global Agriculture Portfolio PAGG?
As of July 2014, the market cap for PowerShares Global Agriculture Portfolio (PAGG) is $70,656,000.00.
What is the market cap for PowerShares NASDAQ Internet Portfolio PNQI?
As of July 2014, the market cap for PowerShares NASDAQ Internet Portfolio (PNQI) is $332,688,000.00.
What is the market cap for Altisource Portfolio Solutions SA ASPS?
As of July 2014, the market cap for Altisource Portfolio Solutions S.A. (ASPS) is $2,633,350,271.04.
What is the market cap for American Strategic Income Portfolio ASP?
As of July 2014, the market cap for American Strategic Income Portfolio (ASP) is $43,709,649.23.
What is the market cap for American Municipal Income Portfolio XAA?
As of July 2014, the market cap for American Municipal Income Portfolio (XAA) is $82,084,367.42.
You form a portfolio by investing equally in A beta0.8 B beta1.2 the risk-free asset and the market portfolio What is your portfolio beta?
The portfolio consists of four stock: A, B, risk-free asset and the market. The weights will be 0.25 each and the portfolio beta = (0.25 x 0.8) + (0.25 x 1.2) + (0.25 x 0) + (0.25 x1) = 0.75 Akshita Mehta
