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

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