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Advanced corporate finance part Final assignment Investment management

  1. Asset allocation
  2. Markowitz
    1. Markowitz and the modern portfolio theory
    2. The risk-free assets
    3. Asset pricing
  3. Investment styles
    1. Passive management
    2. Active management
  4. Security selection
    1. Top-down approach
    2. Bottom-up and stock-picking approach
  5. Evaluation of a security
    1. Fundamental or financial analysis
    2. Technical analysis

Investment management is the professional management of various securities like shares and bonds and other assets such as real estate to meet specified goals of investment for the benefit of the investors. In an attempt to understand the world of investment management, it is useful to be aware of the following principles. There are different asset classes: stocks, bonds, real-estate, derivatives, and commodities. One of the crucial issues of investment management is to allocate funds among these assets and among individual securities within each asset class. Asset classes reveal different market dynamics and different interaction effects. Indeed, the allocation of monies among the asset classes will have significant effects on the performance of the invested funds and it is crucial to balance the different securities and assets in order to meet the goals of the investors.

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