Portfolio Management : An Efficient Market Context

1874 Words Dec 6th, 2015 8 Pages
Portfolio Management is critical in an efficient market context. Investors undertake a variety of actions to reduce risk through diversification including correlation to investments and understanding the types of risks in the market. We examine the variety of investments available to investors that optimize gains, minimize risk and take the investor to the next level. Introduction When it comes to investments many people cringe at the very idea of getting involved in making investments and building a portfolio because of the risk involved. As a new investor myself, learning the concept of portfolio management in an efficient market context is an essential concept to learn in order to make smart investment decisions and maximize gains on an entire portfolio. The objective is to explain how to manage a portfolio in an efficient market. The research will reflect the different types of investment and their correlations, both positive and negative, and how this effects investments. The purpose of the objective and research is to gain insight into making better investment decisions that will both maximize gains for the entire portfolio, but to create a diversified portfolio that reduces risk. The methodology will reflect the types of investments that are available, how to figure out the outcomes for the desired return, and the correlation that the investment will have for the investor and the portfolio. Ultimately, the anticipated outcome is for any investor, but particularly…
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