Question
QUESTION 4 ( 4 Marks ) Fully explain what is meant by the following terms in relation to a security or a fund. a) Alpha
QUESTION 4 ( 4 Marks )
Fully explain what is meant by the following terms in relation to a security or a fund.
a) Alpha
b) Beta
Question 6 (4 Marks)
Use the following information for a bond to calculate:
a) the Macaulay Duration of the bond and; (2 Marks) b) the Modified Duration of the bond explaining the significance of modified duration (2 Marks)
5 year maturity Coupon of 10% 6% yield to maturity
Note: For the modified duration you may assume a change in yield of 1%
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Question 4 a Alpha Alpha is a term used in finance to measure the excess return of a security or a fund over the return of a benchmark or a market ind...
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Human Resource Management
Authors: Jean M. Phillips, Stanley M. Gully
1st edition
1111533555, 978-1111533557
