Hi Puys, As with one of my previous threads I wanted to discuss on efficient frontier -
EF is said as the point on the curve wherein investor makes high return with the same amount of risk on the CML. However, in the figure the EF point is shown to be the upper point above the curve with the high risk high return.
We can discuss more on this....?
Sorry for the delayed reply. EF is not a point on the curve but it is the curve itself. EF is the curve which is formed by a collection of various points each of which represents an efficient portfoilio, wherein investor makes maximum return for a given level of risk. Based on the risk profile of the investor, optimal portfolio for that investor is the point on EF which is tangential to the investor's highest indifference curve of risk. About the point in the figure I will get back to you. Hope this helps.
I am appearing for CFA Level 1 in June 2010. I am currently 3rd year engineering student and have no background in finance. I would like to know if u can suggest any reference for it to beginners. Any resource which will help me in build up basic concepts. Currently I'm using google. But i would like to know books which are useful.
I am appearing for CFA Level 1 in June 2010. I am currently 3rd year engineering student and have no background in finance. I would like to know if u can suggest any reference for it to beginners. Any resource which will help me in build up basic concepts. Currently I'm using google. But i would like to know books which are useful.
Go through this entire thread once You will find the answers to most of your queries
is the registration for CFA june, 2010 open at this point of time. I want to register early so that i can get the material from them and start studying early.
also please let me know if there are major changes in the curriculum of dec,09 and jun,10. i already have the dec 09 material. so will it be ok if i study from this material. is there any way i can come to know of the changes made in the curriculum from '09 to '10.
hi guys.. i started with economics... damn, not goin tht wel as expected. u cant rely on scheweser alone to understand stuff well :grin: i do hav some basic doubts, shud seem silly to those who hav understood the concepts. wut does opportunity cost really mean? is it just the cost for giving up other resources in order to make this new product or is it the gain that he gets because of his action(ie foregoin other resources for this one); tht is it some marginal profit or something? the answer to that might clear this one too- at the point of equilibrium if opportunity cost= marginal benefit , how does the producer make any profit? what relation does producer surplus hav with producer's profit? and does a producer intentionally start with lesser than optimum quantity and gradually increase with an objective to increase his production surplus? hope these are not really stupid doubts this forum will have life if those who started ther prep describes which topic they are doing and how its goin- and post doubts too for clarification.. cuz many wont be having much background in this.. in economics if u dont hav a background make sure u undastnd vrythin tht u read, else u mite need to come back vry other time!! im only half way thru in study session 4 and will let u kno how it goes.. and someone pls clarify my doubts thanks..
hi guys.. i started with economics... damn, not goin tht wel as expected. u cant rely on scheweser alone to understand stuff well :grin: i do hav some basic doubts, shud seem silly to those who hav understood the concepts. wut does opportunity cost really mean? is it just the cost for giving up other resources in order to make this new product or is it the gain that he gets because of his action(ie foregoin other resources for this one); tht is it some marginal profit or something? the answer to that might clear this one too- at the point of equilibrium if opportunity cost= marginal benefit , how does the producer make any profit? what relation does producer surplus hav with producer's profit? and does a producer intentionally start with lesser than optimum quantity and gradually increase with an objective to increase his production surplus? hope these are not really stupid doubts this forum will have life if those who started ther prep describes which topic they are doing and how its goin- and post doubts too for clarification.. cuz many wont be having much background in this.. in economics if u dont hav a background make sure u undastnd vrythin tht u read, else u mite need to come back vry other time!! im only half way thru in study session 4 and will let u kno how it goes.. and someone pls clarify my doubts thanks..
Hey arkos, Thanks for putting in your query , I think it would be easier for me to answer if we take down the queries one by one.
Opportunity Cost is the maximum value that one could have derived had he chosen to invest one' resources in one of the forgeone options.
Here resources means everything it includes opportunity cost of producers' time also.
Put simply, it is the value of investing the resources in the best possible opportunity among all the foregone choices.
Also, I think at the point of equilibrium it is Marginal cost = Marginal Rvenue rather than Opportunity cost = Marginal Revenue , which makes sense, because had the producer produced sth less than that resulting in either of the two situations :- MC > MR, if the marginal cost is greater than marginal revenue, so the producer is losing in producing that little extra,which dents his profit,which would have been achieved at MC = MR. MC Hope that helps,
hi everyone, i want to join a coaching insti for june '10 exam , in delhi , i would really appreciate sm inputs frm ppl abt the coaching classes FINguru/pristine classes..etc..
hi everyone, i want to join a coaching insti for june '10 exam , in delhi , i would really appreciate sm inputs frm ppl abt the coaching classes FINguru/pristine classes..etc..
pUyS.
Please read the earlier posts before posting any query...
Hello friends I am new on this site I have enrolled for CFA June 2010 Level 1 and will be following this thread Can anyone tell roughly how much days it takes for the shipment of curriculum to be dispatched from US and in how many days you get it? I enrolled today Thanks.
Indians do not get it dispatched from USA, it comes from hong Kong so it reaches within a week
thanks..
