course bg
EduPristine>Blog>QotD: Question of the Day

QotD: Question of the Day

January 26, 2011

Dear Readers,

The answer to the previous question is –

A. The minimum variance portfolio is a portfolio of securities which has the lowest standard deviation of each of the individual component assets

Here, is the Question of the Day

An investor makes the following statement,

While testing the weak-form of EMH the returns from a trading rule must be calculated excluding any transaction charges because they tend to skew the returns when the returns are negative.

  1. Transaction costs increase the losses when the returns are negative.
  2. Transaction costs involved in implementing the trading rule should be included.
  3. Transaction costs are public information and they should be included in the calculations..

About Author

avatar EduPristine

Trusted by Fortune 500 Companies and 10,000 Students from 40+ countries across the globe, it is one of the leading International Training providers for Finance Certifications like FRM®, CFA®, PRM®, Business Analytics, HR Analytics, Financial Modeling, and Operational Risk Modeling. EduPristine has conducted more than 500,000 man-hours of quality training in finance.

Comments

Interested in this topic?

Our counsellors will get in touch with you with more information about this topic.

* Mandatory Field

`````````````````````````````````````````````````` Post ID = 6243