Capital Market, Only answer with relevant information and answer should not be m

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Capital Market, Only answer with relevant information and answer should not be more than five lines for each question.
1. Explain the meaning of company beta's being greater than the market. 2. Why do the investors not have to consider the unsystematic risks? 3. How would you construct an optimal portfolio ? 4. What would be the formula to calculate the risk of an individual asset? 5. What are the key differences between futures and forwards? 6. Explain what is meant by Market efficiency. 7. List the participants in a stock exchange. 8. What are the uses of market indices? 9. What are the main uses of derivatives? 10. How would you use correlation coefficient in portfolio construction? Capital Market, Only answer with relevant information and answer should not be more than five lines for each question.
1. Explain the meaning of company beta's being greater than the market. 2. Why do the investors not have to consider the unsystematic risks? 3. How would you construct an optimal portfolio ? 4. What would be the formula to calculate the risk of an individual asset? 5. What are the key differences between futures and forwards? 6. Explain what is meant by Market efficiency. 7. List the participants in a stock exchange. 8. What are the uses of market indices? 9. What are the main uses of derivatives? 10. How would you use correlation coefficient in portfolio construction? Only answer with relevant information and answer should not be more than five lines for each question.
1. Explain the meaning of company beta's being greater than the market. 1. Explain the meaning of company beta's being greater than the market. 2. Why do the investors not have to consider the unsystematic risks? 3. How would you construct an optimal portfolio ? 4. What would be the formula to calculate the risk of an individual asset? 5. What are the key differences between futures and forwards? 6. Explain what is meant by Market efficiency. 7. List the participants in a stock exchange. 8. What are the uses of market indices? 9. What are the main uses of derivatives? 10. How would you use correlation coefficient in portfolio construction?

Explanation / Answer

Ans -1 Beta basically is a type if indicator of a market,it indicates fluctuation of market like risk, stocks and investment is more and less volatile than the market. It is also important to measure risk of an investment which may company decrease by diversification.

If company's beta is greater than market means company investment is more volatile than the market.

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