Very Short Answer Question 1. What is economic analysis? Economic analysis is the process of studying general state of economy to assess economic movements in country and their impact on stock price. In the process of economic analysis, we study the pattern of movement in macroeconomic variables to forecast how they affect specific industry and […]
Chapter 5: Modern Portfolio
Very Short Question Answer 1. How do you distinguish a growth portfolio from an income portfolio? A growth portfolio is one that offers a long-term capital appreciation to the investor. The example of growth portfolio is the portfolio of high growth common stock. On the other hand, the income portfolio ensures regular income such as […]
Chapter 4: Return and Risk
Very Short Question Answer 1. Differentiate between expected return and required return? The expected return refers to the rate of return expected from an investment. On the other hand required rate of return is the rate of return that an investment must earn to compensate against the level of risk involved in it. Expected return […]