Portfolio theories guide the investors to select securities that will maximize returns and minimize risk. These theories can be classified into different categories as depicted in figure 6.1. I. Traditional Approach: 1. Dow Theory: Charles Dow, the editor of Wall Street Journal, USA, presented this theory through a series of editorials. Dow formulated a hypothesis that the stock market does [...]
William Sharpe (1964) published the Capital Asset Pricing Model (CAPM): According to CAPM, return of a portfolio is equal to the sum of risk-free rate of return and a risk premium that is proportional to its beta. As per this model, risk and return are linearly associated. Ri = Rf+ βi (Rm-Rf) Where, Ri = Risk free rate of return [...]
Here is a compilation of term papers on ‘Perception’ for class 11 and 12. Find paragraphs, long and short term papers on ‘Perception’ especially written for school and college students. Term Paper on Perception Term Paper Contents: Term Paper on the Definition of Perception Term Paper on the Elements of Perception Term Paper on the Principles of Perceptual Selection Term [...]