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As we know that, each investor has a different attitude towards risk therefore his/her utility function will lie on a different segment of efficient frontier. The optimal portfolio will be found at the tangency point of efficient frontier and utility function. Another key difference between efficient portfolio and optimal portfolio is that, while an efficient portfolio can be determined mathematically, an optimal portfolio is
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The main purpose of diversification of portfolio is to reduce the overall risk associated with the portfolio without compromising much on the return. It is the motive of every investor to maximize return and minimize risk. The volatility or risk associated with a portfolio is minimized due to diversification because of the fact that not all the assets included in the portfolio move along the same direction.
These two acts are Combined Code 1998 and Sarbanes-Oxley (SOX) Act 2002. Combined code was prepared by Hampel committee in 1998. Corporate governance refers to a set of standard policies and principles through which a company is governed. This is developed to follow how the company will be directed and controlled so that it can fulfil objectives and goals along with can add value to the company and it’s all of its stakeholders’ interest in long term.
The new era of globalise businesses and increased awareness in the stakeholders have given importance to the notion of Corporate Governance. The execution of the notion will have important consequences for investors, companies, and, critically, for the stock and other financial markets of UK.
Since the expected rate of return for both the assets are equal therefore it does not matter whether we use standard deviation or coefficient of variation method to find the risk of the asset.
The practical method of finding these variables quite differs from the theoretical
and Boswell 2007, 145) and after that he took it upon himself to come up with a precise and mechanical order that he thought lacked in the real world.
His paintings are known for being made out of black lines, horizontal and vertical. His belief matched with that of Leonardo
4. Your star player has previously negotiated a payment of $25 million 5 years from now. They would like to receive payment today? What is the present value of that money if it discounted at 3%, 7%, and 0%?
187). The paper uses Paramed UK Ambulance Service in the discussion. The firm is involved in sponsorship and has sponsored Paul Kenny and David Paton. Besides, the Ambulance firm have recently sponsored St.