Question
TRUE OR FALSE? Nonsystematic risk is the type of risk that is attributable to broad macrofactors affecting all securities. Traditionally, recommended asset allocations have focused
Nonsystematic risk is the type of risk that is attributable to broad macrofactors affecting all securities.
Traditionally, recommended asset allocations have focused on the investors life-cycle stage suggesting that young investors with a 30-year working horizon are generally assumed to be able to invest relatively heavily in low risk bonds and money market securities in their portfolio.
The Markowitz analysis determines the set of efficient portfolios, all of which are equally desirable, and the efficient set is an arc in expected return and standard deviation space.
If prices follow a random walk, price changes over time are not random (dependent).
Since market data are the basis of technical analysis, technical analysis is very valuable if a market is weak form efficient.
If one believes in semistrong-form efficiency, the strong form is also encompassed.
According to behavioral finance, one of the behavioral biases is called "regret aversion" that causes individuals to avoid an action for fear the action will cause mental anguish such as avoiding a trade for fear that they will trade a security at the wrong time.
According to behavioral finance, "contrarian Investing" is the theory that it pays to trade contrary to most investors.
January effect is a market anomaly about the observed tendency for small-company stock returns to be higher in January relative to other months.
The efficient market hypothesis (EMH) is simply the formal statement of market efficiency concerned with the extent to which security prices slowly and imperfectly reflect available information.
January effect is a market anomaly about the observed tendency for small-company stock returns to be higher in January relative to other months.
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