{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Holding-11

# Holding-11 - Buy Sell Price falls below limit Limit order...

This preview shows pages 1–3. Sign up to view the full content.

Price falls below limit Price rises above limit Buy Limit order buy Stop- buy order Sell Stop- Loss order Limit -sell order

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Holding-period return(HPR)=Ending price-Beginning price+Cash dividend/Beginning price Arithmetic Average-Mean Geometric average-[(1+r)x(1+r)x(1+r)]1/4-1 APR=Per-period ratexPeriods per year APR=[(1+EAR^)1/n] – 1]xn 1+EAR=e^APR [ x −] == 2 1 =variance= Ơ 2 Standard deviation= Ơ E(r)=ProbabilityxHPR Sharpe(reward-to-volatility) measure=[E(r r )-r r ]/ Ơ 1 R=nominal interest rate, r=real interest rate, i=inflation rate R=R-I, 1+r=(1+R)/(1+i), r=(R-i)/(1+i), R=r+E(i) Cov(r r ,r r )= [ == 1 (i)-r r ][r r (i)-r r ] Correlation coefficient= Ƥ 1 =Cov(r r ,r r )/ Ơ 1 Ơ 1 Cov(r r ,r r )= Ƥ 1 Ơ 1 Ơ 1 E(r r )=r r E(r r )+r r E(r r ) Ơ 12 = ( [ Ơ 1 ) 2 +( [ Ơ 1 ) 2 + (( 2 1 Ơ 1 )( [ Ơ 1 ) Ƥ ° ° Excess Return=r r =E(r r )+r r M+r r CAPM-E(r r )=r r +r r [E(r r )- r r ] Value=Dividend/Discount rate-Growth rate Nominal return=Interest+Price appreciation/Initial price Real return=(1+Nominal return/1+Inflation)=1 T=maturity date Bond value=(Coupon/(1+r)^t)+(Par value/(1+r)^T)
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}