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- Question 5 In class, we discussed the CAPM model and its implications. What is the market portfolio? What assets does the model price? Is the S&P 500 a good proxy for the market portfolio, and if not, why? Please elaborate.Why is investing in Cryptocurrency seem legitimate?Q 1. What are the important considerations in the investment decision process for today’s investors?
- what are some pros and cons of investing in risk management softwares ?question 6 Why should investors diversify their portfolios? When writing your answer consider which risks can be avoided. You are encouraged to provide examplesH2. What are the different types of expected return and related risk, for individual assets and for portfolios as a whole. Explain carefully what each type represents and give examples in each case. What type of expected returns does the CAPM model capture? What type of expected return and risk you are exposed to if you have the FTSE 100 INDEX only in the portfolio?
- Hi goodmorning can you answer questions 2 this is a continuation from question one . Question 2 Using the data generated in the previous question a) Plot the Security Market Line (SML) b) Superimpose the CAPM’s required return on the SML c) Indicate which investments will plot on, above and below the SML? d) If an investment’s expected return (mean return) does not plot on the SML, what does it show? Identify undervalued/overvalued investments from the graphQ9: Why is gold considered a safe heaven for investment? Q10: Why is Asset Allocation very important in investing?Q2. Explain what type of firms a Buyout Fund (or a Private Equity Fund) might target as part of a leveraged buyout?