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Why does Portfolio analysis is not always clear what makes an industry attractive or where a product is in its life cycle?
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- 1.Why the limitation of Portfolio analysis is it is not always clear what makes an industry attractive or where a product isin its life cycle?Why does Limitations of Portfolio analysis is It is not always clear what makes an industry attractive or where a product is in its life cycle that have caused some companiesto reduce their use of this approach?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?
- Whats the difference between a price momentum strategy and an earnings momentum strategy. Under what conditions would you expect the two approaches to produce similar portfolios?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.Explain Systematic (market risk) and Business-specific risk. Can diversification of the portfolio reduce each? please explain to me as simply as possible.
- If the market is efficient, what is the role of an active portfolio manager? would active portfolio management be benefecial in this case?What are the quantitative characteristics of the asset and how to measure. How does one asset in the same portfolio influence the other one in the same portfolio. What could be the influence of this relationship to the investor's portfolio? What is relationship between the return on an asset and returns in the whole market (market portfolio)?What statistical concept do many portfolio managers use to represent a risk when considering investment performance?
- 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 benefits and advantages of diversification for a portfolio?The recent financial crisis clearly depicted a positive correlation between asset prices and, as a result, could warrant consideration for optimal portfolio strategies. Why would an investor prefer a constrained portfolio optimization approach?