Security Analysis and Portfolio Management - Assignment Example

Comments (0) Cite this document
Summary
You can use any database to obtain the prices e.g. data stream, yahoo finance (click the Investing tab followed by the Historical Prices tab) etc. Use data from…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.2% of users find it useful
Security Analysis and Portfolio Management
Read TextPreview

Extract of sample "Security Analysis and Portfolio Management"

Download file to see previous pages Identify the MVP and efficient frontier consisting of the portfolios made up of these two assets. Label them clearly on the graph. (5 marks)
The combination of two risky assets is concave and this depends on the extent of the correlation. Where the two assets have a perfect positive or a perfect negative correlation; they will form the following graph.
It can be observed that perfect correlation has no benefit from diversification because the portfolio standard deviation=the weighted average of the parts. A perfect negative correlation gives a zero-risk portfolio. As you reduce the correlation between pairs of assets, the portfolio risk is reduced. Since most assets are not perfectly correlated, they will usually lie in a curve that curves to the left.
An investment can minimize his risk by holding a combination of assets that are not perfectly correlated, -1 ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Security Analysis and Portfolio Management Assignment - 4”, n.d.)
Security Analysis and Portfolio Management Assignment - 4. Retrieved from https://studentshare.org/finance-accounting/1686178-security-analysis-and-portfolio-management
(Security Analysis and Portfolio Management Assignment - 4)
Security Analysis and Portfolio Management Assignment - 4. https://studentshare.org/finance-accounting/1686178-security-analysis-and-portfolio-management.
“Security Analysis and Portfolio Management Assignment - 4”, n.d. https://studentshare.org/finance-accounting/1686178-security-analysis-and-portfolio-management.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Security Analysis and Portfolio Management

Security Analysis and Portfolio Management

...? Security Analysis and Portfolio Management of the Table of Contents What do you mean by credit Rating? 3 Objectives and Benefits of Credit Rating 5 Major Credit Rating Agencies in the World 8 Moody’s 8 Standard & Poor’s 9 Fitch 10 Rating Symbols of various agencies for bonds and stocks 10 Fitch Group 11 Moody’s 12 Standard & Poor’s 13 Methodology used in assessing the credit rating 14 CAMEL Rating 16 Issues Related to Credit Rating 18 References 20 Bibliography 22 What do you mean by credit Rating? The history of credit rating can be traced back to the early 1840s, when the financial crisis of 1837 took place. The increasing levels of non-payment, after the economic crisis can be cited as one of the primary causes behind... such as...
15 Pages(3750 words)Assignment

Portfolio Analysis and Investment Management

...and their individual risk profile. Afterwards we can estimate what the overall effect of this financial instrument will be in the overall risk level of the whole portfolio and how it can suit a particular kind of potential investor. Financial instruments are divided in different classes depending on their financial characteristics, risk levels, and maturity. For financial investments an individual can choose to invest directly in a variety of financial instruments or indirectly through the use of investment companies such as a mutual fund. Direct Investment alternatives available to build a well diversified investment portfolio are: Non Marketable Securities- Non marketable...
5 Pages(1250 words)Essay

Security Analysis and Portfolio Management

...?SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT College: Securities refer to assets of an organization that carry a financial value. Securities are also tradable assets. Security analysis incorporates methods that aid in the calculation of the value of various such assets and the impact of market fluctuations on the value of those securities or financial tradable instruments. 1. Defining value versus growth stocks in ‘Rethinking Stock Returns.’ The scholars Fama and French define value stocks as those stocks that have low ratios of book values to the market value. Fama says that the intuition...
5 Pages(1250 words)Essay

Security Analysis and Portfolio Management

.... Financial Analysts Journal 61(4), pp. 24-28. Brown, G., & Kapadia, N. (2007). Firm-specific Risk and Equity Market Development. Journal of Financial Economics 84(2), pp. 358-88. Carter, R., & Howard, E. (1990). Security Analysis and Portfolio Management. The Journal of Portfolio Management 16(3), pp. 81-85. Edwards, J., & Alfons, J. (2004). Ownership Concentration and Share Valuation. German Economic Review 5(2), pp. 143-71. Fornell, C. (2006). Customer Satisfaction and Stock Prices: High Returns, Low Risk. Journal of Marketing 70(1), pp. 3-14. Garashchenko, F. (2004). The Problem on Security Portfolio...
10 Pages(2500 words)Assignment

Security and Portfolio Analysis

...Q1 a. Will the limitations of 20 stocks likely increase or decrease the risk of the portfolio Explain. It is clear that Hennessy has had a successful track record of managing portfolios, giving consistent returns to the client. Hennessy has been able to apply superior skill to stock selection. Over the years, the portfolio generally held 40-50 stocks, with about 2%-3% of total funds committed to each issue. The reason Hennessy seemed to do well most years was because the firm was able to identify each year 10 or 12 issues which registered particularly large gains. However, Jones doesn't believe in diversification and feels that favorable returns are limited by the high degree of diversification in the portfolio. He has suggested... a...
4 Pages(1000 words)Case Study

Security Analysis and Portfolio Management

...INDUSTRY ANALYSIS I. INTRODUCTION The purpose of engaging in industry analysis is to determine how all economic factors come into play in favor of the selected industry. Factors like sales, government, labor, competition, market, financial indices, management and the rest usually play significant roles in determining the level of success of the industry under investigation. II INDUSTRY ANALYSIS A. Analysis of sectors The business operations in any country comprises of some sectors of industry: the industry could be transport, educational, service, manufacturing, health and safety, pharmaceutical fashion, trading, legal, food and so on....
10 Pages(2500 words)Research Paper

State budget appropriations

2 Pages(500 words)Coursework

Security Analysis and Portfolio Management

...Security Analysis and Portfolio Management Section A: Stock Analysis Introduction Investment has been a fundamental and a major concept within the global economy. In every economy there are investors who buy stocks or securities from different organizations. Securities or stocks are assets that have financial values (Kevin, 2006). However, the questions of the right stock or security (in terms of value and profitability) to purchase and the management of the investment have always been impediment to extensive investment. In order to overcome such impediments, financial experts or...
7 Pages(1750 words)Essay

Security Analysis and Portfolio Management

...SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT By + Download of the historical prices of two companies namely British American group and Microsoft Corporation. The file is attached on the spreadsheet shown. From Dec 2008-2013 Workings British American group Total MONTHLY expected returns = (sum H2:H73) = 1.64645E+11 Annualized expected returns=1.97574E+12 Monthly std dev=666136486.1 Annual STD deviation=666136486.1*sq12 =2307564477 Microsoft corporation Total monthly returns=89137726870 Total annual returns=89137726870*12 Monthly std dev =272097591.9 Annual std dev=942573707.5 CORREL1.2=-0.065274251 b.) on the excel C) Calculating w1 std ...
5 Pages(1250 words)Assignment

Portfolio Management / SWOT Analysis

...United Development Company: SWOT Analysis United Development Company Established in July 1999, United Development Company (UDC) is leading private sector Shareholding Company in Qatar that contributes significantly to Qatar’s growth (UDC, 2015). This paper analyses the strengths, weakness, opportunities and threats that it undergoes in its business operations. Its strengths lie in its business structure and strategies in the Qatar environment. It has a strong share capital and market capitalization that enables it to adjust its business structure to the financial market (UDC, 2015). It is currently developing an international real estate development project that enhances its position as a first-choice private sector...
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic Security Analysis and Portfolio Management for FREE!

Contact Us