THE ASSET ALLOCATION DECISION
Since risk drives return, investing funds and managing portfolios should focus primarily on
managing risk rather than on managing returns.
Asset Allocation is the process of deciding how to distribute
AN INTRODUCTION TO PORTFOLIO MANAGEMENT
Some Background Assumptions
One basic assumption of portfolio theory is that every investor tries to maximize the returns
from their set of investments for a given level of risk.
A. Risk Aversion Given
Chapter 4: BOND VALUATION
Introduction: At some point in time, growing firms need funds for operations, investments, and
asset acquisition. The capital market, particularly the debt market is one of the most ideal venues
for securing such funds. Therefore
AN INTRODUCTION TO ASSET PRICING MODELS
Capital Market Theory: An Overview
Capital market theory extends portfolio theory and develops a model for pricing all risky assets.
The final product, the Capital Asset Pricing Model (CAPM), is used to
OVERVIEW OF FINANCIAL
The chapter addresses the following:
The Corporate Life Cycle (Forms of Business Organizations)
The Primary Objective of the Corporation: Value Maximization
An Overview of th