Money
CHAPTER ONE 1.0. OVERVIEW OF PORTFOLIO MANAGEMENT
The main aim of private sector is to seek profit, their capacity is to earn profit, depends on their investment policy among others. Its investment policy, return, depends on the manner in which it manages its investment portfolio. Thus, organizations investment policy emerges from a straight forward application of the theory of portfolio management. Portfolio management therefore, refers the prudent management of an organization (banks) assets and liabilities, in order to seek some optimum contribution of income or profits, liquidity and safety. Modern portfolio theory provides fundamental concepts that are useful in multiple portfolio management environments. Portfolio management is about aggregating sets of user needs into a portfolio and weighing numerous elements to determine the mix of resource investments expected to result in improved end user capabilities. The key elements that portfolio management must assess are over all goals, timing and tolerance of risk, cost/price interdependences, budget and change in the enterprise environment over time.
Accountability for the transparency of the government expenditures has been a significant focus during the last two decades. More recently it has become important that this expenditures (agency, mission) outcome efficiently, effectively and collectively rather than as independent unrelated initiatives. Portfolio management is a key tool for supporting this form of fiscal accountability. The manner in which organizations (banks) manage their portfolio, that is acquiring and disposing of their earning assets, can have important effect on the financial markets, on the borrowing and spending practices of households and businesses and on the economy as a whole.
1.1. CONCEPT OF PORTFOLIO MANAGEMENT DEFINITION OF PORTFOLIOA portfolio refers to a collection of investment tools such as stocks, shares, mutual funds, bonds, cash and so on depending on the investor’s
The main aim of private sector is to seek profit, their capacity is to earn profit, depends on their investment policy among others. Its investment policy, return, depends on the manner in which it manages its investment portfolio. Thus, organizations investment policy emerges from a straight forward application of the theory of portfolio management. Portfolio management therefore, refers the prudent management of an organization (banks) assets and liabilities, in order to seek some optimum contribution of income or profits, liquidity and safety. Modern portfolio theory provides fundamental concepts that are useful in multiple portfolio management environments. Portfolio management is about aggregating sets of user needs into a portfolio and weighing numerous elements to determine the mix of resource investments expected to result in improved end user capabilities. The key elements that portfolio management must assess are over all goals, timing and tolerance of risk, cost/price interdependences, budget and change in the enterprise environment over time.
Accountability for the transparency of the government expenditures has been a significant focus during the last two decades. More recently it has become important that this expenditures (agency, mission) outcome efficiently, effectively and collectively rather than as independent unrelated initiatives. Portfolio management is a key tool for supporting this form of fiscal accountability. The manner in which organizations (banks) manage their portfolio, that is acquiring and disposing of their earning assets, can have important effect on the financial markets, on the borrowing and spending practices of households and businesses and on the economy as a whole.
1.1. CONCEPT OF PORTFOLIO MANAGEMENT DEFINITION OF PORTFOLIOA portfolio refers to a collection of investment tools such as stocks, shares, mutual funds, bonds, cash and so on depending on the investor’s