Financial markets: equities
Abstract
Equity represents ownership interest and a claim on the profits of the company. Investment performance is improved by diversification. Equity indexes make diversification easier. Mutual funds and exchange-traded funds are pooled investment vehicles which offer diversification. The theory underlying portfolio diversification is “modern portfolio theory.” A model developed to price securities is the capital asset pricing model. The efficient market hypothesis underlies the belief that the best investment strategy is to buy a low-cost, diversified portfolio with passive management. Artificial intelligence is finding uses in trading applications, and portfolio management among other areas. Investing in ...
Get Environmental, Social, and Governance (ESG) Investing now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
