Portfolio Essay

less risk corresponds to a lower return. Moreover, investment risk can be substantially reduced through diversification, which spreads a portfolio across different industries, businesses and investment options. The makeup of a diversified portfolio continually changes based on an investor’s time horizon and investment goals. In accordance with the Modern Portfolio Theory (MPT), one can maximize return while reducing risk, through assessing investments standard deviation and beta. When applied to

Why is it so important to have a professional portfolio? An effective professional portfolio can make us stand out among others, whether in a professional or academic setting. The professional portfolio is a multi –faceted method to bring our accomplishments, goals, ambitions, and personal points of view together. It displays our characteristics to potential employers and organizations. It provides distinguishing evidence of our skills and abilities and validates to the employer that we are qualified

HAW Hamburg Faculty of Business and Social Science Department of Business Term paper Markowitz portfolio allocation theory First name, family name Date and place of birth Matriculation number Maria Titova 10.08.1992, Moscow 2227909 Telephone, e-mail Date of submission: +49 152 0218 1097 5rd December 2014 maria.titova@haw-hamburg.de Lecturer: Prof. Dr. Decker Course: Corporate Finance Name of degree program: International Business (M.Sc.) - II - I Abstract The idea of diversification is rather old

justification of investor’s behavior and development of optimization model for portfolio selection process. In 1990, Markowitz received a Nobel Prize for his contributions to financial economics and corporate finance, the first time presented in his “Portfolio Selection” (1952) and more extensively in his monography “Portfolio Selection: Efficient Diversification” (1959). His seminal works form the foundation of the Modern Portfolio Theory (MPT). Markowitz’ ideas ware later substantially expanded by his

Cheryl Mew FINS2624 – Portfolio Management Semester 1, 2011 LECTURE 1 – BOND PRICING WHAT IS A BOND? A bond is a claim on some fixed future cash flows. A commonwealth government bond (CGB) is a bond which pays semi-annual coupons, in which the maturity date/ coupon payment date is on the 15th of every month. A zero coupon bond is a bond with no coupons. The important information of a bond: 1. 2. 3. 4. 5. 6. • 1. 2. Transaction date: T Settlement date:T+2 Coupon payment dates Maturity date

Introduction A portfolio is the collection of securities an investor holds. Portfolio theory is about risk, return, preferences and opportunities. E.g. if there are three assets, A, B, and C and the expected rate of return and volatility of each of the assets. Comparing asset B to asset A investors would prefer asset B over asset A because even if asset A and B have the same volatility the expected return of asset B is much higher than A. Similarly when comparing asset A to Asset C investors would

Modern Portfolio Theory Modern portfolio theory is an investment theory based on that investors can construct portfolio to maximize return which based on a given level of market risk, emphasizing that risk is an essential part of higher return. Modern portfolio theory is one of the most significant economic theory dealing with finance and investment, which was published by Harry Markowitz in his paper “Portfolio Selection” in 1952 by Journal of Finance (Shipway, 2009). According to Shipway (2009)

holdings of my 10 stocks with the portfolio as a whole, either strategy would yield me positive returns. However, diversification is shown to be not as successful, as there are more unwanted factors. Three of my individual holdings (FIX, UNH, and HUBG) were shown to have large standard deviations, in both monthly and annually, which means that all three stocks have high historical volatilities, and are much riskier when bought individually compared to diversified portfolio. However, average monthly and

Strategic Asset Allocation: Determining the Optimal Portfolio with Ten Asset Classes Niels Bekkers Mars The Netherlands Ronald Q. Doeswijk* Robeco The Netherlands Trevin W. Lam Rabobank The Netherlands October 2009 Abstract This study explores which asset classes add value to a traditional portfolio of stocks, bonds and cash. Next, we determine the optimal weights of all asset classes in the optimal portfolio. This study adds to the literature by distinguishing ten different

establish and maintain effective, cooperative working relationships with many departments and organizational levels • Experience working with investment advisors, portfolio managers and institutional investors • Proficient in widely-used financial software including the CPMS suite of products, PALTrak, Advisor Workstation, Portfolio Builder, Hypothetical Illustrator, Bloomberg, and Morningstar Direct • Creative in the ability to create compelling new sales ideas and to suggest improvement ideas