Risk Analysis : Financial Analysis Of The Stock Market And Investments

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Introduction According to Rosvall & Bohlin (2014:1), risk is the price of opportunities provided by the stock market for investors. If investors would like to minimize risks of stock trading process, the portfolio investments are vital to be concentrated on (Anghelache & Anghelache, 2014:8). Besides, Goetzmann & Kumar (2008:433) also stated that portfolio investment is a great choice for investors to eliminate risk. This study has provided simulation of investment and process of establishing a portfolio. According to Markowitz (1952:77), the rule of portfolio selection is investors should maximize the value of the future profits. Therefore, researchers utilized various analysis techniques to monitor performance of the portfolio selected…show more content…
Despite strengths, some weaknesses also should be discussed. According to Murray & Frenk (2012:98), health-care system of US is only ranked at 37th in the world based on The World Health Report 2000. However, it should not be ignored that the cost of US health-care system is the highest in 2006. Main problem of health-care system is the large gap between pay and gain. Moreover, there are also some opportunities and threats of US economy. First of all, electronic device and medical service in worldwide market are much larger than before (Kaasinen, 2013:79). According to world report of Industry and information from 2016 to 2017, wireless communication equipment has a significant growth rate at 2.89% (Baller et al.,2016:59). Furthermore, the combination among countries becomes tighter. The rules of APEC, G20 and other international organizations force other countries to open their domestic market to multiple companies like APPLE and Microsoft, unless they are willing to be separated from global market and provide convenient way to American companies to go through service trade barrier. Additionally, some threats also cannot be ignored. For example, though American companies are competitive in global market, there are also some challengers from newly-developing countries like Huawei & Alibaba with more flexible strategies and lower costs. Portfolio structure According to the research of
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