structural adjustment programme (SAP) in 1986 and de-regulation of the financial sector, new banks proliferated mainly driven by attractive arbitrage opportunities in the foreign exchange market (Heiko 2007), but prior to the de-regulation period, financial intermediation never took off and even declined in the1980’s and 1990’s (Capirio and Kligbiel). The sector was highly oligopolistic with remarkable features of market concentration and leadership. Lemo noted that there are ten banks that
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Pricing Theory (APT)? Which model is appropriate for calculating a stock's required rate of return? What is the Securities Market Line and which of the above models is it a product of? Capital Asset Pricing Model and Arbitrage Pricing Theory both stress on the fact that expected return depends on risk originating from economic influence and is not affected by the unique risk. Market portfolio has a great importance in the CAPM but it does not feature in the APT. APT does not speak about the underlying
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capital, the expected excess market return is equal to the: a. return on the stock minus the risk-free rate. b. difference between the return on the market and the risk-free rate. c. beta times the market risk premium. d. beta times the risk-free rate. e. market rate of return. Difficulty level: Easy CHARACTERISTIC LINE c 3. The best fit line of a pairwise plot of the returns of the security against the market index returns is called the:
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Neuro-finance and stock trading Experiment tests A preliminary research proposal Paul Farah Contents Introduction ............................................................................................................................................ 3 Procedures and methodology .................................................................................................................. 4 Experiments ................................................................................
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• Financial system functions and goals • Types of assets, physical, financial, … • Debt, money market, notes, bond, government debt, sovereign debt • Types of US government debt, mortgage backed securities • Equities, common, preferred, warrants • Pooled investment securities, nav, open-end, closed-end, etf, trust depositories, hedge funds • Currencies, contracts, settlement, forward contracts, futures • Financial intermediaries • Primary market, secondary
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Risk (VaR) Model: Evidence from the Indian Debt Market Sunando Roy* Conventional Value at Risk models are severely constrained while dealing with liquidity risk. This inevitably leads to an underestimation of overall risk and consequently misapplication of capital for the safety of financial institutions. Standard Value at Risk (VaR) model assumes that any quantity of securities can be traded without influencing market prices. In reality, most markets are less than perfectly liquid and many securities
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Global Banking and Markets provides a full range of credit, risk management and investment banking products and services relevant to the financing and strategic development needs of our clients. Our products include investment banking, mergers & acquisitions, corporate banking, institutional equity sales, trading and research, debt products, derivatives, foreign exchange and bullion & base metals. We also cross-sell the full range of wholesale products and services offered by Scotiabank. Position:
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2014/2015 BAC 815 FINANCIAL MANAGEMENT ASSIGNMENT Instructions: i. Provide detailed information with regard to the questions posed ii. Cite the sources of the information in the last page (references) iii. Your work should be typed MINI CASE Assume that you recently graduated with a degree in finance and have just reported to work as an investment advisor at the brokerage firm of Balik & Kiefer Inc. your first assignment is to explain the nature of the Kenya financial market to Michelle
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goal of financial management: Maximize the current value per share of the existing stock. 6. Agency problem and Control of the Corporation Agency Relations: stockholders with management - agency cost Goal: Management has a significant incentive to act in the interests of stockholders. Conclusion: Stockholders control the firm and the stockholder wealth maximization is the relevant goal of the corporation . 7. Financial Market: Money Market & Capital Market Money Market: loosely
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Financial Terms and Roles Alvaro Garcia Jr. FIN/370 August 19, 2013 Dr. Rachel Ang Finance – Individuals and businesses evaluate investments and raise capital to fund them. Understanding and having knowledge of finance will benefit both personal and professional life. Efficient market – Investors respond to new information buying and selling their investments the speed with which investors act and the way that prices respond to the information determine the efficiency of the market. Primary
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