When do we update IPS and review IPS? And also plz clarify the review And update- components of IPS Under investment guidelines- why permissible leverage when clients funds and why would he take levered funds.
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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 ...
In the picture attached, we know that the tangential point in the Market portfolio. But are the other portfolios on the curved portion(Older Efficient Frontier)? Does the investment opportunity set(Or ‘Chattri’ as Sanjay Sir calls it) consist of all possible various ...
Securities that plot on SML may have diversification benefits… can anyone elaborate the above statement?
Portfolio Return is the weighted avg of expected return of indiviual securities but how return is not affected by correlation between securities ??
Please explain risk and return profile in context of option 1 in Q 148.
If diversification ratio is 0.8, then how the risk has been reduced by 20%.
Please Explain Separation Theorem
Slope of optimal CAL > CAL – what is the thought process?