Portfolio

EXECUTIVE SUMMARY In an economy, people indulge in economic activity to support their consumption requirements. Savings arise from deferred consumption, to be invested, in anticipation of future returns. Investments could be made into financial assets, like stocks, bonds, and similar instruments or into real assets, like houses, land, or commodities. The aim of Portfolio Manager […]

A combination of several financial assets constitutes a portfolio… Finding an optimal portfolio position for an investor is the central theme of the ‘Portfolio Theory’. This theory advocates that the return expected by any investor on his return is subject to the interaction of certain factors. In order to determine the correlation between the risks […]

The equity risk premium is the excess return required by investors to compensate risks of holding a stock rather than holding a “risk free” asset. Jason ,2011) Under the Capital Asset Pricing model: , risk free investments involve borrowing and lending among investors and borrowing positions offset by lending positions, therefore let Y = and […]