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Why does portfolio analysis advantage is its graphic depiction facilitates communcation?
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- Why does Portfolio analysis is graphic depiction facilitates communication?What is the difference between active and passive portfolio managementWhat 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.
- Why the advantage of Portfolio analysis is it stimulates the use of externally oriented data to supplement management’s judgment?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 ManagementWhy does Portfolio analysis stimulates the use of externally oriented data to supplement management’s judgment?Give examples
- Which are the different assets that have the potential to be combined efficiently in a portfolio that will provide an optimal risk-return relationship for investors?If the market is efficient, what is the role of an active portfolio manager? would active portfolio management be benefecial in this case?Refined measures of performance are commonly used to evaluate portfolio performance. a. Define and explain these measures in detail. b. How does the investor choose the right measure? Explain it fully.