investor’s behavior and development of optimization model for portfolio selection process. In 1990, Markowitz shared a Nobel Prize for his contributions to financial economics and corporate finance, the first time presented in his “Portfolio Selection” (1952) and more extensively in his monography “Portfolio Selection: Efficient Diversification (1959). His seminal works formed the foundation of what is now popularly known as Modern Portfolio Theory (MPT). This foundation was later substantially expanded
1. Abstract CAPM is a capital asset pricing model for securities where it postulates a straightforward relationship between its market risk and expected return. It was introduced by William F. Sharpe and Linter in the 1960s and it sets the foundation for establishing the relationship between risk and return. Despite its popularity, it is not without limitations. As there is no one perfect solution for every problem, supplementary/alternative models (APT and three factor model) will be discussed in
1.1 What is Venture Capital? Venture capital is a segment of private equity industry, which focuses on early-stage, high-potential, start-up companies. The venture capital fund earns money by owning equity in the companies it invests in, which usually have a new technology or business in high technology industries, such as biotechnology and IT, however with high risk. Funds are typically established as limited partnerships, which is a contract between institutional investors who become limited partners
INTRODUCTION 1.1 Background Growth is essential for a healthy sustenance and survival of any firm in this competitive world. There are two growth routes available to any company: - organic and inorganic. The Theory of the Firm’s Growth Penrose states that the growth rate of the firm will decline with its age. Organic growth beyond certain size or age is a big challenge and hence inorganic growth gains significance. Inorganic growth means growing through mergers and acquisitions. The inorganic growth