Asset Management
Asset Management
Asset Management
Explaining Market Beta
Market beta measures the systematic risk of an asset in relation to the over all movement of the market. Systematic risk refers to market risk that affects all investors. It includes macroeconomic conditions, inflation, interest […]
Asset Management
Understanding a Portfolio’s Strategic Asset Allocation
The rate of return that you would achieve on your portfolio depends on the strategic asset allocation that you’ve embraced. […]
Asset Management
The Relationship Between Risk and Reward in Investing
When it comes to investing, there are risks involved and it’s important for you to understand the various types of risks and what they entail. The reason why we want to explore the different types of risk is because we want to avoid the ultimate risk – losing all of your capital. You must weight the potential reward against risk to decide if it’s worth putting your money on the line […]
Asset Management
Being Mindful of Investment Biases
When it comes to investment choices, keep in mind possible investment biases. The Behavioral Finance Theory states that when it comes to decision making, investors act rationally via objective thinking and logic. Investors act rationally […]
Asset Management
Efficient Market Hypothesis States Stock Prices Are A Random Walk
Efficient Market Hypothesis is an investment theory that states all relevant information at a given time of a particular security is already reflected in it’s price. The hypothesis is thought to have been derived from […]
Asset Management
How Modern Portfolio Theory Preaches Risk Aversion
Modern Portfolio Theory is an investment theory that was put forward by famed economist Harry Markowitz in 1952. He stated that risk-averse investors are able to create portfolios that will allow them to maximize their […]
Asset Management
CAPM – Calculating Expected Return
Capital Asset Pricing Model (CAPM) is a theory developed by economist William Sharpe in 1970 that details the relationship between the expected return and the risk of investing in a particular investment. The theory utilizes […]