Report. Dear Sir, Here is the report on “Personal Portfolio Management”. I shall be pleased to thank you for assigning me such an interesting topic. While dealing with the topic, I have gone through different books on portfolio management, local and international research papers, national dailies, annual reports, stock market websites and other world wide webs. It is a great pleasure for me that I have got a practical orientation with portfolio management and the relevant finance theories. Though
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Case Study 1 NPV: Of all the investment appraisal methods, NPV is often argued to be the most superior. This is because it takes into account the time value of money. The method assumes that a dollar today is worth more than a dollar this time next year. It works under the assumption that if one is owed a dollar and the borrower offers a choice of either giving the dollar now or in a year’s time, the more rational option for the lender is to take the dollar now. Provided the lender does not keep
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Course Literature, articles, ME2017 V14 1. Blichfeldt & Eskerod (2008): Project portfolio management – There´s more to it than what management enacts. International Journal of Project Management, Vol 26, Issue 4, May 2008, pp. 357-365 2. Pellegrinelli S. (2011): What’s in a name: Project or programme? International Journal of Project Management, Vol 29, pp. 232–240 3. Pellegrinelli S. & Garagna L. (2009): Towards a conceptualisation of PMOs as agents and subjects of change and renewal. International
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disregard the items at the bottom of the data; you will fill in the blanks later.) Returns on Alternative Investments Estimated Rate of Return State of the Economy Prob. T-Bills High Tech Collec- tions U.S. Rubber Market Portfolio 2-Stock Portfolio Recession 0.1 5.5% -27.0% 27.0% 6.0% a -17.0% 0.0% Below Avg. 0.2 5.5 -7.0 13.0 -14.0 -3.0 Average 0.4 5.5 15.0 0.0 3.0 10.0 7.5 Above Avg. 0.2 5.5 30.0 -11.0 41.0 25.0 Boom 0.1 5.5 45.0 -21.0 26.0 38.0 12.0 r-hat ( r ˆ ) 1
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manufacturer for over 30 years and had taken full advantage of the company’s voluntary retirement savings plan. However, instead of buying a diversified set of investment he had invested his money into a few high growth companies. Over time his investment portfolio had growth to about $900,000 being primarily comprised of the stocks of 3 companies. He was very fortunate that his selections turned out to be good ones and after numerous stock-splits the prices of the three companies had appreciated significantly
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Alex Sharpe’s Portfolio 1. Returns and Risk Estimate and compare the returns and variability (i.e. annual standard deviation over the past five years) of Reynolds and Hasbro with that of the S&P 500 Index. Which stock appears to be riskiest? S&P 500 Annualized Expected Return: 6.8920% S&P 500 SD (Annualized): 12.477% Reynolds Annualized Expected Return: 22.4980% Reynolds SD (Annualized): 32.446% Hasbro Annualized Expected Return: 14.2060% Hasbro SD (Annualized): 28.114% Reynolds
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Markowitz Mantra * Required Basic Concepts! As randomly selected securities are combined to create a portfolio, the __________ risk of the portfolio decreases until 10 to 20 securities are included. The portion of the risk eliminated is __________ risk, while that remaining is __________ risk * o diversifiable; nondiversifiable; total o relevant; irrelevant; total o total; diversifiable; nondiversifiable o total; nondiversifiable; diversifiable The higher an asset's beta, * o the more
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Diversification A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio. Diversification strives to smooth out/reduces unsystematic risk events in a portfolio so that the positive performance of some investments will neutralize the negative performance
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also are required to demonstrate and explain the computations of annual return, risk, Sharpe ratio, return, covariance, beta, Treynor Ratio, portfolio standard deviation, and build a graph. THEORETICAL CONCEPTS In this assignment, we used the formula of Variances, Annual, Standard Deviation, Covariance, Correlation Coefficient, Beta, Variance Of Portfolio, Risk, Sharpe Ratio, Treynor Risk 1) Variance Variance measures how far a set of numbers is spread out. The variance measures how far each
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return are strongly correlated. A higher risk usually yields a higher return. Our team observed that within Alex Sharpe’s portfolio, the Reynolds’ fund holds the highest risk (highest standard deviation of 32.45%), as well as the highest return (16.27% in comparison to Hasbro’s return of 11.31%). Although a lower standard deviation (lower risk) is ideal for an investment portfolio, the Reynolds’ fund yields a higher return for the higher associated risk. Furthermore, our team’s data illustrated that
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