Portfolio Management Quiz 3: Difference between revisions

Latest revision as of 22:50, 2 April 2008

efficiency: This implies low friction in trading on the market

efficiency: This implies that ____ available to participants affects market prices quickly and cost effectively.

efficiency: This implies that the prices set for all securities are 'correct' in the sense that they force the market to ____ capital in the way that maximizes the current and future productive capacity of the capital stock of the economy.

Adherents of the

believe that all stocks can be measured relative to a benchmark, the market portfolio.

The

considers the arrival and use of information on the market, and the timing of its use.

In it's most basic form,

implies that stock

and

investment strategies are at best pointless but, more probably, wasteful.

is a multi-factor model which proposes that different factors explicitly determine the stock's return vi a linear relationship.

earnings

market

low price-to-

ratio or price-to-

values

Next quiz Portfolio Management Quiz 4

@@ Line 4: / Line 4: @@
 { Transactional } efficiency: This implies low friction in trading on the market
 { Informational } efficiency: This implies that ____ available to participants affects market prices quickly and cost effectively.
-{ Allocation } efficiency: This implies that the prices set for all securities are 'correct' in the sense that they force the market to ____ capital in the way that maximizes the current and future productive capacity of the capital stock of the economy.
+{ Allocational } efficiency: This implies that the prices set for all securities are 'correct' in the sense that they force the market to ____ capital in the way that maximizes the current and future productive capacity of the capital stock of the economy.
+{
+|type="{}"}
+Adherents of the { CAPM } believe that all stocks can be measured relative to a benchmark, the market portfolio.
+{
+|type="{}"}
+The { EMH } considers the arrival and use of information on the market, and the timing of its use.
+{
+|type="{}"}
+In it's most basic form, { EMH } implies that stock { analysis } and { active } investment strategies are at best pointless but, more probably, wasteful.
+{
+|type="{}"}
+{ APT } is a multi-factor model which proposes that different factors explicitly determine the stock's return vi a linear relationship.
+{Some of the factors commonly used in practice for equity portfolios are:
+|type="{}"}
+earnings { momentum }
+earnings { revisions }
+market { capitalisation }
+low price-to-{ earnings } ratio or price-to-{ book } values
 </quiz>