{"product_id":"risk-return-analysis-of-selected-bse-auto-company-von-varsha-virani","title":"Risk Return Analysis of Selected BSE AUTO Company","description":"\u003cp\u003eWe present a model of a financial market in which immature diversification, based simply on portfolio size and obtained as a consequence of the law of large numbers, is distinguished from efficient diversification, based on mean-variance analysis. This distinction yields a valuation formula involving only the essential risk embodied in an asset¿s return, where the overall risk can be decomposed into a systematic and an unsystematic part, as in the arbitrage pricing theory; and the systematic component further decomposed into an essential and an inessential part, as in the capital-asset- pricing model.The two theories are thus unified, and their individual asset-pricing formulas shown to be equivalent to the pervasive economic principle of no arbitrage. The factors in the model are endogenously chosen by a procedure analogous to the Karhunen¿Loéve expansion of continuous time stochastic processes; it has an optimality property justifying the use of a relatively small number of them to describe the underlying correlation structures. Because the difficulties in the formulation of the law of large numbers with a standard continuum of random variables are well known, the model uncovers\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9786202552806\"\u003e\u003ch3\u003e\u003c\/h3\u003e\u003c\/div\u003e","brand":"Libri","offers":[{"title":"Softcover - 9786202552806","offer_id":39465100017757,"sku":"9786202552806","price":39.9,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/9fc47f88-68ec-4cc8-8c34-15afd78ec829.jpg?v=1776498302","url":"https:\/\/shop.autorenwelt.de\/products\/risk-return-analysis-of-selected-bse-auto-company-von-varsha-virani","provider":"Autorenwelt Shop","version":"1.0","type":"link"}