0
The capital asset pricing model (CAP-M) assigns a risk (called a beta) to every investment using a regression (best fitting line through past data) that tries to match the performance of the investment to the performance of the Stock Market as a whole. The slope of that line (the beta) shows the extent to which any one investment magnifies or reduces normal market risk -- a beta of 1.0 is average, while a beta of 2.0 means the investment will generally go up (or down) twice as much as the market as a whole. In a perfect capital market, all investments will have an intercept (the alpha of the best-fitting line) of zero, because that is the portion of the investment return for which risk can be eliminated through diversification. If an investment has a non-zero alpha (the best-fitting line is not through zero) there are unusual returns (profits or losses) that are not tied to the riskiness of the investment -- that is, a positive alpha means the investment has returned more profit than would be expected for its riskiness (beta). Some investors choose to invest in those choices with positive alphas in hopes of beating the overall market.
What else can I help you with?
What are the objectives of debtors management?
The objectives of debtors management includes making good decisions relating to the business. These decisions are crucial for making good investments.
What has the author Lars Jaeger written?
Lars Jaeger has written: 'The New Generation of Risk Management for Hedge Funds and Private Equity Investments' 'Through the Alpha Smoke Screens'
What functions are used to analyze loans and investments?
Excel has a group of financial functions, some of which would do those things. There are functions for working out rates of interest, payments you would need to make, the future value of investments, how much you would have to invest to get a certain return and many other things relating to loans and investments. You could also build your own formulas to calculate these things using other functions.
What is the term relating to money?
The term relating to money can refer to "currency," which is the medium of exchange used to facilitate transactions. It encompasses various forms, including coins and banknotes, as well as digital currencies like cryptocurrencies. Additionally, "finance" is another related term that involves the management, creation, and study of money and investments.
Classes of capital expenditures?
replacement investments expansion investments product-line or new market investments investments in safety and/or environmental projects strategic investments other investments
Who is the brother fraternity of alpha kappa alpha?
Alpha Phi Alpha
Who are the sisters of alpha phi alpha fraternity?
Alpha Kappa Alpha Sorority, Inc.
Where could one find some investment ideas?
One could find some investment ideas from Seeking Alpha and Merrill Edge. One could also visit Equity Build Finance or Energy Investments Incorporation.
What is equitye based investments?
Equity based investments are stocks as related to paper investments.
What is the motto of Evergreen Investments?
The motto of Evergreen Investments is '"Investments that stand the test of time."'.
What has the author Dan Lemaire written?
Dan Lemaire has written: 'Lost over the Atlantic?' -- subject(s): Canadian Investments, Commerce, European Investments, Foreign Investments, Foreign economic relations, Investments, Canadian, Investments, European, Investments, Foreign
What is Alpha Phi Alpha's motto?
Alpha Phi Alpha's motto is 'We Shall Transcend All'.
