Investment And Portfolio Management

Investment & Portfolio management (FIN3IPM) Final Revision Liam GUI  germane(predicate) Materials Your revision should found on the lecture notes. Go with alone tutorial questions again. Read text book if while allowed. Chapters be cover in closing: 4, 6 10, 14 16, 20 and 24. This final revision moreover covered all tutorial-relevant learning points. It only gives you a brief idea spry what we perplex learn from this subject. Do not just affirm on it!  defile on Margin & Short sales Margin is the portion of leveraging hurt in discover that contributed by the investor. Buy on margin means that, besides of the margin, the investor borrow some trim money as divide of his investment. For example, you borrow money to sire an stock investment. You gain when percentage expense increases. You pay screening for the money you borrowed, and leave the distinction as your profits. Short exchange means that the investor bargain something that do not belong to him. For example, you sale shares that you borrowed from a broker. When the share price goes down, you buy these shares back at a cheaper price. After you draw them to the broker, the difference is your profits. Net addition Value (NAV) The value of distributively share is called the net plus value (NAV). Normally, the share price will be provided as an given information in a question.

The following equivalence is how it comes out. = ? If the market place price is higher(prenominal) than NAV, the share gross revenue at a premium. If the market price is lower than NAV, the sh are sales at a discount. ? > 0 = ! < 0 Risk Aversion Generally, mass do consider about risk before investment. This is manifestly because they unavoidableness to get more return, but less risk. This conformation of throng is called risk averse. If both of two portfolio have the corresponding risk, they privilege the one with higher return. If both of two portfolio have the same return, they prefer the one with lower risk. They consider about risk-return trade-off. If raft only care about...If you want to get a profuse essay, order it on our website: OrderCustomPaper.com

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