Concepts in investment analysis and portfolio management

Type :

Term papers

Pages :

32 pages

Format :

.doc

Published date :

03/20/2009

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Summary :

 
 

Table of Contents Concepts in investment analysis and portfolio management Table of Contents

 
  1. Introduction
  2. International historical perspective
  3. Risk vs return
  4. Determining risk
  5. Risk pyramid
  6. Types of risks
  7. Diversification and risk management
  8. Debt ? fixed income securities
  9. Market segments
  10. Characteristics of debt and debt valuation
  11. Valuation of bonds
  12. Investments and measuring returns
  13. Risk measurement
  14. Relationship between risk and return
  15. Market portfolio risk
  16. Securities and capital markets
  17. Tests and results of semi-strong-form EMH
  18. Conclusions on strong-form EMH

Abstract

Making money is easy however loosing it is easier. One look at the chart for the Indian Stock Market would reveal that the markets are cyclical going up and down from time to time. Markets are also very volatile, something you will realize if you look at the last 3 days of trading and you see that the market has moved between 8522 and 8122 points, which is a difference of 400 points! Anytime, you invest money, you run a risk of not receiving all that was promised or expected but the fact is that the more you invest the more you get in terms of returns. Equity markets, on average, give higher returns than bonds and government securities. however these higher returns have a higher associated probability of losses too. Risk is essentially the volatility of the returns and in turn, you have an expectation of return that is proportionately higher, if higher a level of risk is assumed. There are two factors that determine risk. One of these factors is the Time Horizon. In this shorter time periods limit your ability to take risks however if you need money in the long term it becomes possible for you to take bigger risks. The other factor is wealth wherein people with more wealth can afford to take more risks.

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