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Eduncle posted an MCQ
March 03, 2020 • 15:03 pm 0 points
  • UGC NET
  • Management

Match the following constructs of asset pricing with its propagators.

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    Eduncle Best Answer

    Modern portfolio theory (MPT), or mean-variance analysis, is a mathematical framework for assembling a portfolio of assets such that the expected return is maximized for a given level of risk. Economist Harry Markowitz introduced MPT in a 1952 essay, for which he was later awarded a Nobel Prize in Economics.
    The Fama and French Three-Factor Model (or the Fama French Model for short) is an asset pricing model developed in 1992 that expands on the capital asset pricing model (CAPM) by adding size risk and value risk factors to the market risk factor in CAPM.
    The Capital Asset Pricing Model (CAPM) was developed by William F. Sharpe, John Lintner and Mossin.
    Black-Scholes Model is a pricing model used to determine the fair price or theoretical value for a call or a put option.

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