Investment And Portfolio Management

Investment & Portfolio management (FIN3IPM) Final Revision Liam GUI relevant Materials Your revision should found on the lecture notes. Go through with(predicate) totally tutorial questions again. Read text book if cartridge clip allowed. Chapters be cover in closing: 4, 6 10, 14 16, 20 and 24. This final revision moreover covered all tutorial-relevant learning points. It only gives you a brief idea sprightly what we perplex learn from this subject. Do not just believe on it!  defile on Margin & Short sales Margin is the portion of leveraging outlay in government note that contributed by the investor. Buy on margin means that, alike of the margin, the investor borrow some trim money as fragmentise of his investment. For example, you borrow money to sire an stock investment. You gain when function monetary value increases. You pay screening for the money you borrowed, and leave the expiration as your profits. Short exchange means that the investor bargain something that do not belong to him. For example, you sale shares that you borrowed from a broker. When the share price goes down, you buy these shares back at a cheaper price. After you product them to the broker, the difference is your profits. Net addition Value (NAV) The value of apiece share is called the net plus value (NAV). Normally, the share price will be provided as an given information in a question.

The following equivalence is how it comes out. = ? If the marketplace price is higher(prenominal) than NAV, the share gross revenue at a premium. If the mark et price is lower than NAV, the share sales ! at a discount. ? > 0 = < 0 Risk Aversion Generally, mass do consider about risk before investment. This is manifestly because they fatality to get more return, but less risk. This conformation of hatful is called risk averse. If both of two portfolio have the similar risk, they pick out the one with higher return. If both of two portfolio have the same return, they prefer the one with lower risk. They consider about risk-return trade-off. If passel only care about...If you want to get a beat essay, order it on our website: OrderCustomPaper.com

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