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1. "Derivative Markets"

- Analyze the complexities of the derivative markets and how the reporting of derivatives may be deceiving to investors.

- Make a suggestion for improving the methods for valuing derivatives so that the reporting becomes more transparent for investors.

2. "Portfolio Risk"

- Discuss the difficulties that having options in a security portfolio create for the measurement of portfolio risk. Suggest how the standard deviation statistic should be modified to account for this concern.

- Analyze the circumstances where the addition of an option increases the risk of an exciting portfolio and under what circumstances it will decrease portfolio risk. Provide a specific example of each.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91583296
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