Preview

Investment Analysis and Portfolio Management

Good Essays
Open Document
Open Document
2851 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Investment Analysis and Portfolio Management
Term Paper

On

Investment Analysis and Portfolio Management

PREPARED BY

Kamruzzaman Chowdhury

Bangladesh University

ID-081-12-0199

Department of Finance

Faculty of Business Studies

Bangladesh University

Subject: Submission of the term paper

Sir,
I am honored and pleased to inform you that as per the course requirement, I selected to work on the field of Portfolio Management & have prepared the report. Based on our classroom knowledge and real-life key informant interviews, we have prepared this report for your kind consideration.
Researching for and finalizing this report have been an extremely learning, interesting and rewarding experience for me. It was a lifetime opportunity to compare the bookish knowledge with the real-world applications. I have gone heights to ensure the highest possible quality of our research and report. You would be pleased to know that I have worked with the utmost possible integrity, honesty and care for preparing this paper. I also tried to follow your instructions properly now and when necessary.

I would like to request you to allow me to submit the report on the Portfolio Management
Sincerely Yours

Md. Sabirul Islam
ID- 081-12-0199

Introduction:

Security Portfolio Management: Portfolio is a group of financial assets such as shares, stocks, bonds, debt instruments, mutual funds, cash equivalents, etc. A portfolio is planned to stabilize the risk of non-performance of various pools of investment.

Management is the organization and coordination of the activities of an enterprise in accordance with well-defined policies and in achievement of its pre-defined objectives.

Portfolio Management (PM) guides the investor in a method of selecting the best available securities that will provide the expected rate of return for any given degree of risk and also to mitigate (reduce) the risks. It is a

You May Also Find These Documents Helpful

  • Good Essays

    One basic assumption of portfolio theory is that as an investor you want to maximize the returns from your total set of investments for a given level of risk. The full spectrum of investments must be considered because the returns from all these investments interact, and this relationship among the returns for assets in the portfolio is important. Hence, a good portfolio is not simply a collection of individually good investments. There are several risks that are associated with the stocks and assets. So as to averse the risk the investor focuses on building up a diversified group of assets which helps in mitigating the risk of the total investment.…

    • 845 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Nt1310 Unit 7-1

    • 1558 Words
    • 7 Pages

    A portfolio is made up of a group of individual assets held in combination. An asset that would be relatively risky if held in isolation may have little, or even no risk if held in a well-diversified portfolio.…

    • 1558 Words
    • 7 Pages
    Good Essays
  • Satisfactory Essays

    Management- the process of achieving company goals by planning, organizing, leading, controlling, and evaluating the effective use of resources.…

    • 265 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Acc 544 Internal Control

    • 800 Words
    • 4 Pages

    The portfolio risk management is more structured and complex approach, which gives procedures and processes during the process of decision-making. The key goal of the portfolio risk management approach is to reduce risk while getting the most out of the business return on investment (McCarthy, 2004). This approach would help businesses to assess its risk tolerance while improving the business operations. The business that uses the portfolio risk management approach would be able to evaluate the risk in a broad and level way. Overall this…

    • 800 Words
    • 4 Pages
    Good Essays
  • Good Essays

    4. What value has active portfolio management (deviating from the policy portfolio indexes and weights) added to the endowment from the period 1992-2000?…

    • 916 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Finance 454

    • 2374 Words
    • 10 Pages

    This course will cover the nature and pricing of particular securities and the use of these securities in the construction of portfolios to achieve targeted short-term and long-term investment goals. The essence of modern portfolio theory will be studied as well as trading strategies and the efficient market hypothesis.…

    • 2374 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Sfo Project

    • 2887 Words
    • 12 Pages

    Assets allocation is the most import and technical step for investors when they want to invest in the financial market. This report will give an example of how to use Portfolio Theory and the Efficient Frontier to distribute weight among the selected 20 stocks to make an optimal portfolio. Lastly, it will compare the six constructed models and find the best one. There are some terms that will be used in this report. Efficient frontier is be used by rational investor to choose the best combination of risk and return among all possible combinations (Essential Investment,2003).Optimal market portfolio is regarded by Doeswijk, Lam and Swinkels (2012) as the best choose or benchmark choose of portfolio for any ordinary investor because it includes all assets’ value among the market.Minimum variance portfolio (MVP) focuses on the goal of reaching the lowest risk through determining appropriate weight of each asset. “MVPs illustrated returns similar to their benchmark capitalization weighted indices but with 25-30% lower standard deviation.”(Haugen and Baker (1991), Clarke, Silva, and Thorley (2006), and Poullaouec (2008) cited in Bausys)…

    • 2887 Words
    • 12 Pages
    Powerful Essays
  • Better Essays

    Hi , Jbhkl;

    • 1935 Words
    • 8 Pages

    Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading and controlling organizational resources.…

    • 1935 Words
    • 8 Pages
    Better Essays
  • Powerful Essays

    References: Datz , T. (2003, May 01). Portfolio management done right. Retrieved July 30, 2011 from http://www.cio.com/article/31864/Portfolio_Management_Done_Right?page=8&taxonomyId=3154…

    • 1454 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    apple

    • 1553 Words
    • 7 Pages

    To extend the practical and theoretical basis provided in prior studies and to study the investment and management functions of portfolio managers.…

    • 1553 Words
    • 7 Pages
    Satisfactory Essays
  • Good Essays

    The primary reason for investing in portfolios is diversification, that is, the allocation of funds to a variety of securities in order to reduce risk. As the number of securities held in the portfolio increases, the overall variability of the portfolio’s return, measured by its standard deviation, diminishes very sharply for small portfolios, but falls more gradually for larger combinations. This decline in risk is achieved because the exposure to the risk of volatile securities can be offset by the inclusion of low-risk securities or even high-risk ones, so long as their returns are not closely…

    • 735 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    dimensional fund

    • 386 Words
    • 2 Pages

    Start by reading carefully the Case Study HBS 9-203-026, “Dimensional Fund Advisors.” Next, prepare a…

    • 386 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    The process of portfolio construction can be quite complex. Analysts go through reams of statistics – past performance, future potential, and industry knowledge and rely on personal insights into the market to arrive at the final list (UOP, 2009). Every investor aims to maximize returns while minimizing risk. Individual securities must be evaluated not only on the risk-return trade-off in isolation but also on their contribution to the risk-return tradeoff of the entire portfolio. This memo will be based on the Constructing and Managing a Portfolio Simulation that details the fundamentals of portfolio construction in relation to the risk-return tradeoff and the relationship between investment strategy and investment performance. As a treasury analyst for Casa Bonita Ceramics, I was tasked to select the best stocks and allocate company resources to construct a portfolio. This memo will detail my decisions made in the simulation, discuss the Sharpe ratio and how it relates to investment decisions, and lastly, provide recommendations for changes in the organization’s investment strategy in order to improve its investment performance.…

    • 1110 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Titman, S., Keown, A. J., & Martin, J. D. (2011). Financial management: Principles and applications (11th ed.). Upper Saddle River, NJ: Pearson/Prentice Hall.…

    • 1537 Words
    • 7 Pages
    Satisfactory Essays
  • Powerful Essays

    Fins2624 Course Outline

    • 4793 Words
    • 20 Pages

    Stream 1 Stream 2 Stream 3 Mon Mon Tue 12:00 18:00 11:00 14:00 20:00 13:00 Science Theatre Physics Theatre Science Theatre…

    • 4793 Words
    • 20 Pages
    Powerful Essays

Related Topics