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Investments: Analysis and Behavior
Investments: Analysis and Behavior

... After-tax value of a $4,000 investment per year Number of Years ...
The law of demand
The law of demand

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... downside is that there are data requirements. That data may not be readily available to some investors or they may not have the time to perform such an analysis. The question is whether there is a short cut? The answer is an affirmative one. We believe that a top-down, macroeconomic approach could p ...
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... that is appropriate for the risk undertaken and there is not a bias in prices that can be exploited to earn excess returns Market efficiency will not protect you from wrong choices if you do not diversify – you still don’t want to put all your eggs in one basket ...
ab global high yield portfolio
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... risk, structured investments risk, fixed income securities risk, lower-rated and unrated instruments risk, sovereign debt obligations risk and corporate debt obligations risk. These and other risks are described in the Fund’s prospectus. Prospective investors should read the prospectus carefully and ...
SOVB Cambria Sovereign High Yield Bond ETF
SOVB Cambria Sovereign High Yield Bond ETF

The impact of low interest rates on insurers and banks
The impact of low interest rates on insurers and banks

...  … but a slight trend to lower credit ratings  An overall trend towards lower credit ratings is remarkable (from AAA to AA, from A to BBB)  Other factors could also be the motive of the trend : capital optimization, downgrades,… ...
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Portfolio Management (PowerPoint Slides

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Risk, Return, and Discount Rates

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FIN421 - BrainMass
FIN421 - BrainMass

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THE MARKET CAPITALIZATION VALUE AS A RISK
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Problem set 11 - The University of Chicago Booth School of Business
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Fabozzi_Ch05_BMAS_7thEd
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Fixed-income attribution

Fixed-income attribution refers to the process of measuring returns generated by various sources of risk in a fixed income portfolio, particularly when multiple sources of return are active at the same time. For example, the risks affecting the return of a bond portfolio include the overall level of the yield curve, the slope of the yield curve, and the credit spreads of the bonds in the portfolio. A portfolio manager may hold firm views on the ways in which these factors will change in the near future, so in three separate risk decisions he positions the assets in the portfolio to take advantage of the expected forthcoming market movements. If all views subsequently prove to be correct, then each decision will generate a profit. If one view is wrong, it will generate a loss, but the effect of the other bets may compensate. The overall performance will then be the sum of the performance contributions from each source of risk. Attribution is therefore an extremely useful tool in verifying a fund manager’s claims to possessing particular investment skills. If a fund is marketed as being interest-rate neutral while providing consistent returns from superior credit research, then an attribution report will confirm this claim. Conversely, if the attribution report shows that this same manager is making non-zero returns from interest rate movements, then his exposure to interest rate risk is clearly not zero and his investment process clearly differs from his stated position.Fixed-income attribution therefore provides a much deeper level of information than is available from a simple portfolio performance report. Typically, such a report only shows returns at an aggregated level, and provides no feedback as to where the investor’s true skills lie. For these reasons, fixed-income attribution is rapidly growing in importance in the investment industry.
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