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Archive for November, 2010

16 Nov

Risk premium and portfolio theory

An alternative view of risk has been derived from extensive work in portfolio theory and capital market theory by Markowitz, Sharpe, and others. These prior works by Markowitz and Sharpe indicated that investors should use an external market measure of risk. Under a specified set of assumptions, all rational, profitmaximizing investors want to hold a [...]

16 Nov

Endowments and Foundations

Endowments and foundations include colleges, private schools, museums, and hospitals. The investment income generated from the funds invested by endowments and foundations is used for the operation of the entity. In the case of a college, the investment income is used to meet current operating expenses and capital expenditures (i.e., the construction of new buildings [...]

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