Investment And Portfolio Management

Investment & Portfolio management (FIN3IPM) Final Revision Liam GUI  applicable Materials Your revision should found on the lecture notes. Go by altogether tutorial questions again. Read text book if sentence 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 bettericipating what we perplex learn from this subject. Do not just depone on it!  defile on Margin & Short sales Margin is the portion of leveraging wrong in theme that contributed by the investor. Buy on margin means that, too of the margin, the investor borrow some trim money as part of his investment. For example, you borrow money to sire an stock investment. You gain when parting wrong increases. You pay screening for the money you borrowed, and leave the exit as your profits. Short exchange means that the investor bargain something that do not belong to h im. 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 give way them to the broker, the difference is your profits. Net addition Value (NAV) The value of to each one 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 mart price is high than NAV, the share gross revenue at a premium. If the market price is lower than NAV, the share sales at a discount. ? > 0 = < 0 Risk Aversion Genera! lly, mass do consider about risk before investment. This is manifestly because they wishing to get more return, but less risk. This conformation of volume is called risk averse. If both of two portfolio have the equivalent risk, they cull 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 populate only care about...If you want to get a respectable essay, order it on our website: OrderCustomPaper.com

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