Assumptions of the Markowitz Model
1) The investor. considers investment alternatives with respect to the
probability distribution of expected returns.
2) InVestors maximize
I think it is important to have a good understanding of the options available
to you relative to investing in real assets.
There are several advantages to investing in real assets:
1) They serve as an ination hedge
2) They serve as a hedge aga
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We will be using the following variables to pick our companies.
Tier 1 (must have variables! I -
Market Capitalization . Lit-'1?
P/E and PEG ' I Qatilg I
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.If stock price increases:
Basic Option Strategies
If you expect the stock to increase in price you may buy a call or sell a put.
If stock price increases (as expected):
Buy call - Value of option increases with value of stock. You make money