We can use multifactor models for passive management, active management and in rule-based/algorithmic management For passive management, managers often create …
The inter-temporal rate of substitution represents the trade-off between real consumption today vs real consumption in the future. For a …
The APT is a linear model of expected return that incorporates multiple systematic risk factors, but does not identify what …
For review, the Sharpe ratio (SR) is the excess return per unit of risk. It is unaffected by cash inflows or leverage. …
Swaps are off market instruments created by dealers which allow purchasers to increase or decrease their exposure to commodity risk. …
To hold the value of a long position constant, an investor must buy more contracts if the new longer-dated futures …
PE firms can increase value through their ability to re-engineer a portfolio company to operate more efficiently by leveraging their …
Control mechanisms are terms agreed upon between the PE firm and managers of portfolio companies for a PE fund which …
Private equity investing comes from some unique costs and risks. Cost wise, PE funds charge transaction costs, fund set up …