year going forward up to 10 years at a minimum. 3. A rock band plans to visit 15 cities all over the world in one year. They will visit 3 of these 15 cities in January. The number of possible combinations of venues for January is closest to: A. 455 B. 2,730 C. 45 Answer: A The order in which the three cities are visited during January is not important so we use the combinations formula. © Élan Guides 2010 15 C3 15! = 455 (15 3)!(3!) 4. Which of the following tests is most likely
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supportive of and against market efficiency. Stock prices changes are said to have a similar distribution and sovereign of each other, meaning that they follow a random pattern and past movement and trends cannot be used to predict future price of a stock. Efficient market hypothesis (EMH) states that beating the market consistently is impossible as stock market efficiency causes existing share prices to always show and reflect all relevant information available in the market. According to the theory
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Evaluate Efficient Market Hypothesis in Egypt in light of your studying of the hypothesis in class? Ref: www.egx.com.eg/pdf/the_performance_of_egyptian_stock_ The Performance of the Egyptian Stock Market Emerging markets are generally characterised by being “informationally inefficient”, which might indicate the existence of mispricing opportunities that justify the activities of active fund management to achieve abnormal returns within these markets. The aims of this project were, first, to explore
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[pic] Quantitative Applications in Finance (FIN236) Assignment 1 Answer Template Marker feedback Comment on overall performance: |For marker use only. | |Students begin your assignment answers on the following page. | |
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return, E(Rm) is expected return on market proxy and (i; is a measure of risk specific to asset i. This relationship between expected return on asset i and expected return on market portfolio is also called the security market line. If CAPM is valid, all securities will lie in a straight line called the security market line in the E(R), (i frontier. The security market line implies that return is a linearly increasing function of risk. Moreover, only the market risk affects the return and the investor
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n ce (H on ou r s) 2010 CHAPTER ONE INTRODUCTION 1.1 Introduction Stock market is a place for listed companies to raise capital .Companies can use the capital for continuing operating activities and expand business. However, the investors are explained to get a positive return from dividend and capital gain in the stock market. Based on the history, the economic condition will influence stock market. For instances, Malaysia faced deflation during the Asian crisis in years 1997. It caused
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Financial Market Definition of 'Financial Market' Broad term describing any marketplace where buyers and sellers participate in the trade of assets such as equities, bonds, currencies and derivatives. Financial markets are typically defined by having transparent pricing, basic regulations on trading, costs and fees and market forces determining the prices of securities that trade. Some financial markets only allow participants that meet certain criteria, which can be based on factors
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Equity Markets Syed Zulfiqar Ali Shah Assistant Professor-Finance, Department of Business Administration Faculty of Management Sciences, International Islamic University Islamabad E-mail: zulfiqar.shah@gmail.com Muhammad Husnain Ph.D Scholar (Finance) Mohammad Ali Jinnah University Islamabad Email: Husnain_ctn@yahoo.com Abstract Financial economists have continuously questioned the efficient market hypothesis especially in last decade. Major part of discussion is whether the equity markets are efficient
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INTRODUCTION 1.1 BACKGROUND TO THE STUDY The performance of an economy is dependent largely on the efficient performance of its financial markets, since they facilitate the financing of productive activity and hence national output and economic growth. In this research report, the key roles and function of the financial markets are highlighted with the thrust of the discussion on the core issue of how the market works; directly and indirectly. One of the most important factors for rapid economic development
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the next coupon payment-----> cum-interest Y IELD TO MATURITY The Yield to Maturity (YTM) of a bond is: Interest rate that makes the present value of the bond’s payments equal to its price. Determined by the market, reflecting annual rate of return required by market. The Relationship between YTM and Bond Price: YTM = Price AND Price Sensitivity YTM = Price AND Price Sensitivity When YTM = C = 10%, P = FV = $100 o C = YTM, P = FV – Par Bond o C < YTM, P
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