about the various aspects of securities analysis and portfolio management. This course will give the introduction and advanced practical concepts‚ tools and applications of the Pakistani Securities Market. Objectives: The primary objective of this course is to familiarize the student with basic concepts of Securities Analysis and Portfolio Management and its various tools and techniques to facilitate the managers in managing their portfolio. The basic objective of the course is to acquaint the
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investment objectives and different target investors. This has complicate investment process‚ making it very important for investors to understand the nuances of building a good mutual fund portfolio. Portfolio construction of a mutual fund: The broader points to keep in mind‚ when constructing a portfolio‚ are the financial goals to be achieved and the targeted duration till their achievement. Both these aspects affect the selection of an investment instrument‚ the amount of money allocated to
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theories and how they impact business decisions made by financial managers. The theories will be the Modern Portfolio Theory‚ Tobin Separation Theorem‚ Equilibrium Theory‚ Arbitrage Pricing Theory (APT)‚ and the Efficient Markets Hypothesis. Modern Portfolio Theory (MPT) The Modern portfolio theory {MPT}‚ "proposes how rational investors will use diversification to optimize their portfolios‚ and how an asset should be priced given its risk relative to the market as a whole. The basic concepts of
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active-passive management Investors often debate on whether a portfolio should have active or passive exposure to assets. Interestingly‚ the active-passive exposure is much more than just a binary choice. It actually falls into a 4-box matrix. In this discussion paper‚ we show how investors can adopt this 4-box matrix to active-passive management. Active management is a function of security selection and market timing factors. The portfolio manager of a diversified active fund‚ for instance‚ first selects
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Morningstar Mutual Funds‚ 1992) It is a non-depository financial intermediary that allows investors and households to pool money together with a predetermined investment goal. Money that is pooled is thus invested in a diversified and well managed portfolio at a low cost. Mutual Funds are suitable for investments in equity shares‚ bonds‚ real estate‚ derivatives and fixed income instruments. Unit holders receive the income
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mispriced securities. However‚ a consultant suggests Bruner to use Arbitrage Pricing Theory (APT) instead. As the following‚ it will mention the role of CAPM in the modern portfolio management; to clarify the APT faction and explain the reasons why should Bruner use APT to help identify mispriced securities. In modern portfolio management‚ the role of Capital Asset Pricing Model (CAPM) is a model that attempts to describe the relationship between the risk and the expected return on an investment
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~~~~~~*~~~~~~ Portfolio Management Assignment TOPIC: Portfolio investment analysis of Vietfund Management – VF1 Guiding lecturer: Msc. Le Phuong Lan Student: Trinh Mai Chi - 0953040014 Pham Huong Giang – 0953040026 Nguyen Quynh Loan – 0953040049 Le Thi Thu Trang – 0953040089 Pham Huong Van - 0953040095 Class: A2 - High quality class – K48 – F&B -0Ha Noi – 10/2012 Group 3 – A2 HQC F&B – Vinafund VF1 PORTFOLIO MANAGEMENT ASSIGNMENT TOPIC: Portfolio investment analysis
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The above shows the expected return and risk of holding an individual stock – either A or B But we would like to maximize our investment returns while having the lowest level of risk. Look at a portfolio of the two stocks with 50% held in each: State of economy Probability of state A B Return on portfolio Boom .40 30% -5%
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method of investing that been shown to increase portfolio return while reducing portfolio risk as measured by standard deviation. This method specifically increases the efficient frontier for investors. The challenge to an investing firm is an appetite by its customers for an ever increasing efficient frontier. One area to explore to obtain this increase is through further diversifying through international diversification. International portfolio diversification gives your investments a passport
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MANAGING INVESTMENT PORTFOLIOS WORKBOOK A DYNAMIC PROCESS Third Edition John L. Maginn‚ CFA Donald L. Tuttle‚ CFA Dennis W. McLeavey‚ CFA Jerald E. Pinto‚ CFA John Wiley & Sons‚ Inc. MANAGING INVESTMENT PORTFOLIOS WORKBOOK A DYNAMIC PROCESS The CFA Institute is the premier association for investment professionals around the world‚ with over 85‚000 members in 129 countries. Since 1963 the organization has developed and administered the renowned Chartered Financial Analyst®
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