Finance for Managers (Fach) / Chapter9 (Lektion)
In dieser Lektion befinden sich 7 Karteikarten
Important shit
Diese Lektion wurde von Marekhenk erstellt.
- Explain the effect of inflation on rates of return. ... Fisher effect: (1+i)=(1+R)(1+r); i=nominal interest; R=Real interest; r=inflation
- Describe the term structure of interest rates. The higher the time to maturity the higher the yield to maturity.
- Explain how diversifying investments affects the riskiness ... If securities are perfectly negatively correlated --> perfect diversification --> risk is minimised
- What are the different types of efficient markets? weak-form efficient markets semi-strong form efficient markets Strong-form efficient markets
- What is the weak-form of efficient markets? Prices reflect all past security information
- What is the semi-strong form of efficient markets? Prices reflect all public information
- What is the strong-form of efficient markets? All information are fully reflected