International capital markets and investment practices an der TU München

Karteikarten und Zusammenfassungen für International capital markets and investment practices an der TU München

Arrow Arrow

Komplett kostenfrei

studysmarter schule studium
d

4.5 /5

studysmarter schule studium
d

4.8 /5

studysmarter schule studium
d

4.5 /5

studysmarter schule studium
d

4.8 /5

Lerne jetzt mit Karteikarten und Zusammenfassungen für den Kurs International capital markets and investment practices an der TU München.

Beispielhafte Karteikarten für International capital markets and investment practices an der TU München auf StudySmarter:

4. What is the idea behind “efficiently inefficient markets” as formulated by Pedersen?

Beispielhafte Karteikarten für International capital markets and investment practices an der TU München auf StudySmarter:

5. Briefly explain the concept of adaptive markets.

Beispielhafte Karteikarten für International capital markets and investment practices an der TU München auf StudySmarter:

18. When does CPP hold?

Beispielhafte Karteikarten für International capital markets and investment practices an der TU München auf StudySmarter:

7. Name three economically motivated investment styles.

Beispielhafte Karteikarten für International capital markets and investment practices an der TU München auf StudySmarter:

27. In a closed economy (domestic setting) efficient portfolio diversification brings all investors on the same efficient frontier which is essential for the derivation of the CAPM. Explain why in the international setting there exists no unique efficient frontier.

Beispielhafte Karteikarten für International capital markets and investment practices an der TU München auf StudySmarter:

9. The yearly volatility of the German stock market index DAX over the period from January 1993 to February 2018 is 21.12% (see Case 1). Calculate the monthly volatility and the daily volatility of that index.

Beispielhafte Karteikarten für International capital markets and investment practices an der TU München auf StudySmarter:

31. Investors continuously face exchange risk due to unforeseen deviations from PPP. Explain the implications for investors in different countries and for portfolio choice in the setting of IAPM’s.

Beispielhafte Karteikarten für International capital markets and investment practices an der TU München auf StudySmarter:

8. From 1 May 2019 to 1 May 2020 the closing price of Apple stocks (NASDAQ: AAPL) increased from 210.52 USD to 289.07 USD. Calculate the simple return and the continuously compounded return.

Beispielhafte Karteikarten für International capital markets and investment practices an der TU München auf StudySmarter:

12. What is the “typical” correlation between stocks and bonds measured over long periods of time (approximate value)?

Beispielhafte Karteikarten für International capital markets and investment practices an der TU München auf StudySmarter:

20. Today 0.90 EUR buy 1 USD. Economists forecast 1.5% inflation in the Eurozone and 3.0% inflation in the US over the next year. Predict the EUR/USD exchange rate at the end of next year assuming that PPP holds.

Beispielhafte Karteikarten für International capital markets and investment practices an der TU München auf StudySmarter:

23. Explain the concept of Economist’s Big Mac Index

Beispielhafte Karteikarten für International capital markets and investment practices an der TU München auf StudySmarter:

3. Explain the three forms of market efficiency

Kommilitonen im Kurs International capital markets and investment practices an der TU München. erstellen und teilen Zusammenfassungen, Karteikarten, Lernpläne und andere Lernmaterialien mit der intelligenten StudySmarter Lernapp. Jetzt mitmachen!

Jetzt mitmachen!

Flashcard Flashcard

Beispielhafte Karteikarten für International capital markets and investment practices an der TU München auf StudySmarter:

International capital markets and investment practices

4. What is the idea behind “efficiently inefficient markets” as formulated by Pedersen?

Market are inefficient to an efficient extent

§ Competition among professional investors makes markets almost efficient, but the markets remain so inefficient that they are compensated for their costs and risks

§ It is possible to beat the market by implementing economically motivated investment styles

International capital markets and investment practices

5. Briefly explain the concept of adaptive markets.

We are neither always rational nor irrational, but we are biological entities whose features and behaviors are shaped by the forces of evolution.

2. We display behavioral biases and make apparently suboptimal decisions, but we can learn from past experience and revise our heuristics in response to negative feedback.

3. We have the capacity for abstract thinking, specifically forward-looking what-if analysis; predictions about the future based on past experience; and preparation for changes in our environment. This is evolution at the speed of thought, which is different from but related to biological evolution.

4. Financial market dynamics are driven by our interactions as we behave, learn, and adapt to each other, and to the social, cultural, political, economic, and natural environments in which we live.

5. Survival is the ultimate force driving competition, innovation, and adaptation.

International capital markets and investment practices

18. When does CPP hold?

CPP means  “The real price of an individual good is the same in two countries”


It is possible that CPP holds and PPP does not 


CPP holds in absence of trade barriers for homogeneous goods (e.g. gold, precious metals)

International capital markets and investment practices

7. Name three economically motivated investment styles.

(choose 3 from the following)

- Value investing: Buying cheap securities

- Trend-following investing: Buying securities that have been rising

- Liquidity provision: Buying securities with high liquidity risk

- Carry trading: Buying securities with high carry

- Low-risk investing: Buying safe securities with leverage

- Quality investing: Buying high-quality securities

International capital markets and investment practices

27. In a closed economy (domestic setting) efficient portfolio diversification brings all investors on the same efficient frontier which is essential for the derivation of the CAPM. Explain why in the international setting there exists no unique efficient frontier.

Investors in different countries 

- evaluate real returns from the same internationally traded asset differently

- face different settings for portfolio optimization

- evaluate the cross-section of internationally traded assets differently

→ different conditions lead to different risk/return tradeoffs and hence different opt. portfolios

 

International capital markets and investment practices

9. The yearly volatility of the German stock market index DAX over the period from January 1993 to February 2018 is 21.12% (see Case 1). Calculate the monthly volatility and the daily volatility of that index.

- (daily volatility)* Sqrt(22 days)= (monthly volatility)

- (monthly volatility)* Sqrt(12 months)= (yearly volatility)

→ monthly volatility=0,2112/Sqrt(12) = 0,06096

→ daily volatility = 0,012998

International capital markets and investment practices

31. Investors continuously face exchange risk due to unforeseen deviations from PPP. Explain the implications for investors in different countries and for portfolio choice in the setting of IAPM’s.

- Investors in different countries have different expected returns for the same internationally traded asset

- Investors in different countries hold different investment portfolios  

International capital markets and investment practices

8. From 1 May 2019 to 1 May 2020 the closing price of Apple stocks (NASDAQ: AAPL) increased from 210.52 USD to 289.07 USD. Calculate the simple return and the continuously compounded return.

Simple Return (289.07 - 210.52)/ 210.52 = 0.3731 == 37.31%

Compounded Return R = ln(289.07/210.52) = 0.3171 == 31.71%

International capital markets and investment practices

12. What is the “typical” correlation between stocks and bonds measured over long periods of time (approximate value)?

The average long-term correlation between stock and bond markets is positive with a coefficient of 0.24

International capital markets and investment practices

20. Today 0.90 EUR buy 1 USD. Economists forecast 1.5% inflation in the Eurozone and 3.0% inflation in the US over the next year. Predict the EUR/USD exchange rate at the end of next year assuming that PPP holds.

--

S(t+1y) = 0.9*(1+0.015)/(1+0.03) = 0.88689

International capital markets and investment practices

23. Explain the concept of Economist’s Big Mac Index

Version 1:

<The index reflects the financial situation in the country taking into consideration domestic salaries including payments for non-tradable goods such as services. The most expensive big mac in Switzerland indicates that its citizens may travel to other countries and will be able to purchase a basket of goods containing more then one big mac>


Version 2:


Based on the theory of purchasing-power parity (PPP), the notion that in the long run exchange rates should move towards the rate that would equalise the prices of a basket of goods and services around the world

International capital markets and investment practices

3. Explain the three forms of market efficiency

Strong-form efficiency: Security prices fully reflect all publicly available as well as inside information

Semistrong-form efficiency: Security prices fully reflect all publicly available information

Weak-form efficiency: Security prices fully reflect all information in past prices

Melde dich jetzt kostenfrei an um alle Karteikarten und Zusammenfassungen für International capital markets and investment practices an der TU München zu sehen

Singup Image Singup Image
Wave

Andere Kurse aus deinem Studiengang

Für deinen Studiengang International capital markets and investment practices an der TU München gibt es bereits viele Kurse auf StudySmarter, denen du beitreten kannst. Karteikarten, Zusammenfassungen und vieles mehr warten auf dich.

Zurück zur TU München Übersichtsseite

Motorradtechnik

Angewandte Personalführung

Arbeitsrecht

Fabrikplanung

Advanced International Experience

Industrieökonomie

Blockchain Based Systems Engineering

Licensing Agreement

derivatives ss20

logistik in der automobilindustrie

Designrecht

Was ist StudySmarter?

Was ist StudySmarter?

StudySmarter ist eine intelligente Lernapp für Studenten. Mit StudySmarter kannst du dir effizient und spielerisch Karteikarten, Zusammenfassungen, Mind-Maps, Lernpläne und mehr erstellen. Erstelle deine eigenen Karteikarten z.B. für International capital markets and investment practices an der TU München oder greife auf tausende Lernmaterialien deiner Kommilitonen zu. Egal, ob an deiner Uni oder an anderen Universitäten. Hunderttausende Studierende bereiten sich mit StudySmarter effizient auf ihre Klausuren vor. Erhältlich auf Web, Android & iOS. Komplett kostenfrei. Keine Haken.

Awards

Bestes EdTech Startup in Deutschland

Awards
Awards

European Youth Award in Smart Learning

Awards
Awards

Bestes EdTech Startup in Europa

Awards
Awards

Bestes EdTech Startup in Deutschland

Awards
Awards

European Youth Award in Smart Learning

Awards
Awards

Bestes EdTech Startup in Europa

Awards

So funktioniert's

Top-Image

Individueller Lernplan

StudySmarter erstellt dir einen individuellen Lernplan, abgestimmt auf deinen Lerntyp.

Top-Image

Erstelle Karteikarten

Erstelle dir Karteikarten mit Hilfe der Screenshot-, und Markierfunktion, direkt aus deinen Inhalten.

Top-Image

Erstelle Zusammenfassungen

Markiere die wichtigsten Passagen in deinen Dokumenten und bekomme deine Zusammenfassung.

Top-Image

Lerne alleine oder im Team

StudySmarter findet deine Lerngruppe automatisch. Teile deine Lerninhalte mit Freunden und erhalte Antworten auf deine Fragen.

Top-Image

Statistiken und Feedback

Behalte immer den Überblick über deinen Lernfortschritt. StudySmarter führt dich zur Traumnote.

1

Lernplan

2

Karteikarten

3

Zusammenfassungen

4

Teamwork

5

Feedback