a) Give the arguments for active portfolio management. b)What are the reasons which cause investors managing their portfolios passively to make changes their portfolios? c)What are the major differences between active and passive portfolio management? d)Explain the difference between static and tactic asset allocation
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Q: Give the arguments for active portfolio management.
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- a) Give the arguments for active portfolio management. b)What are the reasons which cause investors managing their portfolios passively to make changes their portfolios? c)What are the major differences between active and passive portfolio management? d)Explain the difference between static and tactic asset allocationa) What are the reasons which cause investors managing their portfolios passively to make changes their portfolios? b) What are the major differences between active and passive portfolio management?What does it mean that portfolio diversification can reduce risk, and how does the efficient frontier logically fit into this discussion? include correlation, asset allocation, and asset classes or benchmarks in your answer.
- 1. How to compare different assets in investment selection process? 2. What are the quantitative characteristics of the assets and how to measure them? 3. How does one asset in the same portfolio influence the other one in the same portfolio? 4. And what could be the influence of this relationship to the investor’s portfolio? 5. What is relationship between the returns on an asset and returns in the whole market (market portfolio)?Portfolio theory as described by Markowitz is most concerned with:a. The elimination of systematic risk.b. The effect of diversification on portfolio risk.c. The identification of unsystematic risk.d. Active portfolio management to enhance return.Investigate the role of behavioral biases and market anomalies in challenging market efficiency. Discuss how portfolio managers can account for these factors while constructing and managing investment portfolios.
- What are the reasons which cause investor managing their portfolios passively to make changes their portfoliosIf the market is efficient, what is the role of an active portfolio manager? would active portfolio management be benefecial in this case?What does the efficient frontier reflect? Discuss the efficient frontier using insightsfrom the Markowitz’s Portfolio Theory. Also describe the assumptions under which itholds true. This question is related to Investment Analysis and Portfolio Management
- Explain the concept of ‘beta’ within the framework of the Capital Asset PricingModel (CAPM). Discuss the relevance of the covariance between assets returnsfor an investor wishing to diversify the risk of a portfolio.what are the challenges faced by an investment advisor in managing investor expectations in volatile market conditions? Additionally, can you validate the statement: According to Harry Markowitz, the risk of well-diversified portfolio is less than the risk of the candidate used in the portfolio.Why does the advantage of Portfolio analysis is commonly used in strategy formulation is it raises the issue of cash-flow availability for use in expansion and growth?