Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
9 Cards in this Set
- Front
- Back
|
Close end mutual fund
|
can be purchased for market determined prices
|
|
|
Hedge funds (include market neutral funds and wrap fee (Separately managed) accounts
|
Require substantial minimum investment amounts
|
|
|
CML
|
Standard deviation
Graphs efficient portfolios (well-diversified) No unsystematic risk |
|
|
SML
|
All securities factor
Demonstrate risk or return for individual stocks |
|
|
In Capital market theory
|
Higher beta should result higher risk
|
|
|
Steeper indifference curve for return
|
Greater risk aversion
Choose optimal portfolios with lower levels of risk |
|
|
Endowment or foundation
|
Long investment horizons
High risk tolerance Need little additional liquidity (Cash represent small portion of asset) |
|
|
Insurance companies
|
long term investment horizon, high liquidity, P&C have shorter investment horizon
|
|
|
Bank
|
low risk tolerance
need adequate liquidity for investor withdrawals |
