In the equation of CML(Capital Market Line) i.e. E(Rp)=Rf+(Sharpe Ratio of Market portfolio)*Sigma_p, Sanjay sir said that the ‘Sharpe ratio of the market’ is the highest in the world. What did he mean by that? Does this mean that a ...Read more
SSEI Q Forum Latest Questions
How does the American Put get affected in the presence of dividends? I mean to ask, why does the probability of early exercise of Put become less probable in the presence of dividends?
Sir u taught us one formula of bets calculation that:- COV(X,Y)/VARIANCE OF m = B sir in this formula x is market and y is stock, it means we are calculating beta of stock with respect to market using covariance b/w x ...Read more
Sir , when we have a portfolio which is perfect negatively co-related ( risk free ) Then in that portfolio how we can calculate it’s avg return it should also be zero Rise in value of one stock cancel by the fall ...Read more
How to find at what time stock price will converge to model price/ forecasted price
What is the difference between minimum value and exercise value of an option?