What is the relationship between risk and return in (portfolio management)

Q: What is the portfolio expected return

A: Anticipated return from an investment expected by the investor is known as expected return. The…

Q: Compare and contrast the MPT with the CAPM with reference to the following aspects: Risk…

A: MPT(Modern Portfolio theory ) :- It consists of Calculation of total risk through means of standard…

Q: What roles, if any, do an investor's personal characteristics play in determining portfolio policy?

A: An investor is a person or any organization who contributes the money in investments such as debt,…

Q: e market is efficient, what is the role of an active portfolio manager? would active portfolio…

A: ACTIVE PORTFOLIO MANAGEMENT: Active management (also known as active investing) is a portfolio…

Q: How does the creation of a portfolio reduce risk? What type of assets should be included in a…

A: Introduction Portfolio: Any combination of financial assets, such as stocks, bonds, and currency, is…

Q: f cor

A: Introduction : In statistics, correlation or dependency refers to any statistically link among two…

Q: What is the importance of portfolio management?

A: Portfolio management is the management of the risk and returns on the securities and the group of…

Q: Define required rate of return on a portfolio

A: Introduction: Required rate of return is nothing but the minimum rate that an investor would…

Q: Differentiate between (a) stand-alone risk and(b) risk in a portfolio context

A: Investors can categorize the risks in two types. One is diversifiable risk and other one is…

Q: Define expected rate of return on a portfolio

A: Expected Return: The expected return is the minimum required rate of return which an investor…

Q: How does an efficient portfolio relate to a feasible portfolio?

A: PortfolioSets of assets are termed as a portfolio. A portfolio comprises the number of bonds,…

Q: Describe the goal of a portfolio owner in terms of risk and return. How does he or she evaluate the…

A: The question is based on the concept of portfolio management and objective of portfolio. Portfolio…

Q: What is the difference between active and passive portfolio management

A: Active Portfolio management is process of managing assets which are created with the aim of…

Q: Briefly explain on elements of Modern Portfolio Theory.

A: Modern portfolio theory brings correlation between risk and return for investors.

Q: Explain the relationship between risk and return in portfolio management!

A: Risk refers to an adverse possibility of something to get happen. Risk is the possibility of loss.…

Q: What are the benefits and advantages of diversification for a portfolio?

A: Diversification of portfolio means allocating investments to different assets so that there is…

Q: Which are the Elements of Portfolio Theory?

A: Portfolio theory: The theory of portfolio is about risk and return. The investor is concerned…

Q: Describe how Investment Managers measure the non-systematic risk of their portfolio

A: Non-systematic risk refers to firm specific risk factors. This type of risk is usually eliminated or…

Q: What is CAPM and how it used in portfolio management?

A: Risk and return are the two main parts of any investment and before investing in any security or…

Q: What is hedge portfolio?

A: Hedge portfolio It consists of the long position in a security i.e stock and also the long position…

Q: Define Expected return on a portfolio

A: The expected return is the profit or loss an investor anticipates on an investment that has known or…

Q: What is the purpose of portfolio management?

A: A portfolio is a systematic method of selection of investment mix to get benefit with a limited risk…

Q: Why do an investor need to know and understand Portfolio Management and how do they handle their…

A: Portfolio management is the process of selecting, prioritizing, and controlling an organization's…

Q: Refined measures of performance are commonly used to evaluate portfolio performance. a. Define and…

A: The portfolio refers to the combination of different types of securities for investment. The…

Q: What problems occur in (portfolio management)?

A: In the simplest terms, a portfolio is termed as the combination of various financial investments.…

Q: Calculate Portfolio Returns with example?

A: The determination of profit or loss on the investment in a portfolio is called portfolio return. The…

Q: How does the risk return trade-off relate to the financial manager's main goal?

A: The main goal for a financial manager is to generate the maximum value of the firm to its owners.…

Q: discuss the importance of considering risk when analyzing investments?

A: Risk refers to the probability of uncertainties about future .Risk may also be termed as volatility…

Q: Discuss the role of risk-free assets in the Markowitz Portfolio Theory.

A: Harry Markowitz always focused on lowering the risk and diversification in order to maximize the…

Q: How does one asset in the same portfolio influence the other one in the same portfolio? And what…

A: A portfolio is the collection of securities managed to get systematic returns and maximize the value…

Q: Assess how the Modern Portfolio Theory (MPT) may be used by investors to classify, estimate, and…

A: Modern portfolio theory is the investment related theory that allows investors to manage their risk…

Q: how do financial analysts determine the portfolio that has the lowest risk and yields a high…

A: The combination of investments undertaken to minimize the risk and maximize the return is called…

Q: Write about one of the problems that occur in (portfolio management), then explain it and provide…

A: Portfolio management :         Any investor wants to invest in various types of securities and…

Q: When assessing investment performance, what statistical notion do many portfolio managers employ to…

A: Portfolio managers are those who make investing decisions. They create and implement investment…

Q: Describe 2 main results of the Markowitz Portfolio Theory and how they relate to risk management.

A: Risk management is the process through which risk is analyzed and various strategies are implemented…

Q: What is portfolio Management? Describe the steps involved in portfolio management?

A: Portfolio means a bunch of different assets or investments. To reduce the risk, investors invest…

Q: What statistical concept do many portfolio managers use to represent a risk when considering…

A: The return an individual or organisation gets from any investment portfolio is termed as investment…