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Portfolio Diversification
In finance, diversification is the process of allocating capital in a way that reduces the exposure to any one particular asset or risk. A common path towards diversification is to reduce risk or volatility by investing in a variety of assets. If asset prices do not change in perfect synchrony, a diversified portfolio will have less variance than the weighted average variance of its constituent assets, and often less volatility than the least volatile of its constituents. Diversification is one of two general techniques for reducing investment risk. The other is hedging. Examples The simplest example of diversification is provided by the proverb "Don't put all your eggs in one basket". Dropping the basket will break all the eggs. Placing each egg in a different basket is more diversified. There is more risk of losing one egg, but less risk of losing all of them. On the other hand, having a lot of baskets may increase costs. In finance, an example of an undiversified portfoli ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Risk
Financial risk is any of various types of risk associated with financing, including financial transactions that include company loans in risk of default. Often it is understood to include only downside risk, meaning the potential for financial loss and uncertainty about its extent. A science has evolved around managing market and financial risk under the general title of modern portfolio theory initiated by Dr. Harry Markowitz in 1952 with his article, "Portfolio Selection". In modern portfolio theory, the variance (or standard deviation) of a portfolio is used as the definition of risk. Types According to Bender and Panz (2021), financial risks can be sorted into five different categories. In their study, they apply an algorithm-based framework and identify 193 single financial risk types, which are sorted into the five categories market risk, liquidity risk, credit risk, business risk and investment risk. Market risk The four standard market risk factors are equity ri ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Systematic Risk
In finance and economics, systematic risk (in economics often called aggregate risk or undiversifiable risk) is vulnerability to events which affect aggregate outcomes such as broad market returns, total economy-wide resource holdings, or aggregate income. In many contexts, events like earthquakes, epidemics and major weather catastrophes pose aggregate risks that affect not only the distribution but also the total amount of resources. That is why it is also known as contingent risk, unplanned risk or risk events. If every possible outcome of a stochastic economic process is characterized by the same aggregate result (but potentially different distributional outcomes), the process then has no aggregate risk. Properties Systematic or aggregate risk arises from market structure or dynamics which produce shocks or uncertainty faced by all agents in the market; such shocks could arise from government policy, international economic forces, or acts of nature. In contrast, specific ris ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Harry Markowitz
Harry Max Markowitz (born August 24, 1927) is an American economist who received the 1989 John von Neumann Theory Prize and the 1990 Nobel Memorial Prize in Economic Sciences. Markowitz is a professor of finance at the Rady School of Management at the University of California, San Diego (UCSD). He is best known for his pioneering work in modern portfolio theory, studying the effects of asset risk, return, correlation and diversification on probable investment portfolio returns. Biography Harry Markowitz was born to a Jewish family, the son of Morris and Mildred Markowitz.Harry M. Markowitz Autobiography The Nobel Prizes 1990, Editor Tore Frängsmyr, obel Foundation Stockholm, 1991 During high school, Markowitz developed an interest in physics and philosophy, in particular the ideas of David Hume, an interest he continued to follow during his undergraduate years at the University of Chicago. After receiving his Ph.B. in Liberal Arts, Markowitz decided to continue his st ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Merchant Of Venice
''The Merchant of Venice'' is a play by William Shakespeare, believed to have been written between 1596 and 1598. A merchant in Venice named Antonio defaults on a large loan provided by a Jewish moneylender, Shylock. Although classified as a comedy in the First Folio and sharing certain aspects with Shakespeare's other romantic comedies, the play is most remembered for its dramatic scenes, and it is best known for the character Shylock and his famous demand for a " pound of flesh" in retribution. The play contains two famous speeches, that of Shylock, "Hath not a Jew eyes?" on the subject of humanity, and that of Portia on " the quality of mercy". Debate exists on whether the play is anti-Semitic, with Shylock's insistence on his legal right to the pound of flesh being in opposition to Shylock's seemingly universal plea for the rights of all people suffering discrimination. Characters * Antonio – a prominent merchant of Venice in a melancholic mood. * Bassanio – Anto ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Real Estate
Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more generally) buildings or housing in general."Real estate": Oxford English Dictionary online: Retrieved September 18, 2011 In terms of law, ''real'' is in relation to land property and is different from personal property while ''estate'' means the "interest" a person has in that land property. Real estate is different from personal property, which is not permanently attached to the land, such as vehicles, boats, jewelry, furniture, tools and the rolling stock of a farm. In the United States, the transfer, owning, or acquisition of real estate can be through business corporations, individuals, nonprofit corporations, fiduciaries, or any legal entity as seen within the law of each U.S. state. History of real estate The natural right of a person t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Talmud
The Talmud (; he, , Talmūḏ) is the central text of Rabbinic Judaism and the primary source of Jewish religious law (''halakha'') and Jewish theology. Until the advent of modernity, in nearly all Jewish communities, the Talmud was the centerpiece of Jewish cultural life and was foundational to "all Jewish thought and aspirations", serving also as "the guide for the daily life" of Jews. The term ''Talmud'' normally refers to the collection of writings named specifically the Babylonian Talmud (), although there is also an earlier collection known as the Jerusalem Talmud (). It may also traditionally be called (), a Hebrew abbreviation of , or the "six orders" of the Mishnah. The Talmud has two components: the Mishnah (, 200 CE), a written compendium of the Oral Torah; and the Gemara (, 500 CE), an elucidation of the Mishnah and related Tannaitic writings that often ventures onto other subjects and expounds broadly on the Hebrew Bible. The term "Talmud" may refer to eith ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ecclesiastes
Ecclesiastes (; hbo, קֹהֶלֶת, Qōheleṯ, grc, Ἐκκλησιαστής, Ekklēsiastēs) is one of the Ketuvim ("Writings") of the Hebrew Bible and part of the Wisdom literature of the Christian Old Testament. The title commonly used in English is a Latin transliteration of the Greek translation of the Hebrew word ( or ). An unnamed author introduces "The words of Kohelet, son of David, king in Jerusalem" ( 1:1) and does not use his own voice again until the final verses (12:9–14), where he gives his own thoughts and summarises the statements of Kohelet; the main body of the text is ascribed to Kohelet himself. Kohelet proclaims (1:2) "Vanity of vanities! All is futile!"; the Hebrew word , "vapor", can figuratively mean "insubstantial", "vain", "futile", or "meaningless". Given this, the next verse presents the basic existential question with which the rest of the book is concerned: "What profit hath a man for all his toil, in which he toils under the sun?", expre ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bible
The Bible (from Koine Greek , , 'the books') is a collection of religious texts or scriptures that are held to be sacred in Christianity, Judaism, Samaritanism, and many other religions. The Bible is an anthologya compilation of texts of a variety of forms originally written in Hebrew, Aramaic, and Koine Greek. These texts include instructions, stories, poetry, and prophecies, among other genres. The collection of materials that are accepted as part of the Bible by a particular religious tradition or community is called a biblical canon. Believers in the Bible generally consider it to be a product of divine inspiration, but the way they understand what that means and interpret the text can vary. The religious texts were compiled by different religious communities into various official collections. The earliest contained the first five books of the Bible. It is called the Torah in Hebrew and the Pentateuch (meaning ''five books'') in Greek; the second oldest part was a coll ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Journal Of Business
''The Journal of Business'' was an academic journal published by the University of Chicago Press The University of Chicago Press is the largest and one of the oldest university presses in the United States. It is operated by the University of Chicago and publishes a wide variety of academic titles, including ''The Chicago Manual of Style'', .... It aimed to cover "a comprehensive range of areas, including business finance and investment, money and banking, marketing, security markets, business economics, accounting practices, social issues and public policy, management organization, statistics and econometrics, administration and management, international trade and finance, and personnel, industrial relations, and labor." Originally titled ''The Journal of Business of the University of Chicago'' when it debuted in 1928, the journal shortened its name to ''The Journal of Business'' in 1954. Its broad scope became a liability as specialization in business scholarship grew and num ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ed Elton
Edwin Elton (born 5 October 1939) is a Nomura Professor of Finance at New York University Stern School of Business and Academic Director of the Stern Doctoral Program. Professor Elton also teaches for the Master of Science in Global Finance (MSGF), which is a joint program between Stern and the Hong Kong University of Science and Technology. Biography Professor Elton has served as a portfolio theory and investment management consultant for major financial institutions in Asia, Europe, and the United States. He has been a senior research fellow at the International Institute of Management in Berlin and a visiting scholar at the European Institute for Advanced Studies in Management (EIASM) in Brussels and at Katholieke Universiteit Leuven. Professor Elton received the Graham Dodd Award for research in investments and was named Distinguished Scholar by the Eastern Finance Association. He is a former president of the American Finance Association. Professor Elton is currently ass ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Index (economics)
In Statistics, Economics and Finance, an index is a statistical measure of change in a representative group of individual data points. These data may be derived from any number of sources, including company performance, prices, productivity, and employment. Economic indices track economic health from different perspectives. Influential global financial indices such as the Global Dow, and the NASDAQ Composite track the performance of selected large and powerful companies in order to evaluate and predict economic trends. The Dow Jones Industrial Average and the S&P 500 primarily track U.S. markets, though some legacy international companies are included. The consumer price index tracks the variation in prices for different consumer goods and services over time in a constant geographical location and is integral to calculations used to adjust salaries, bond interest rates, and tax thresholds for inflation. The GDP Deflator Index, or real GDP, measures the level of prices of all- ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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