PORTFOLIO MANAGEMENT

PORTFOLIO MANAGEMENT

[Name of the Institute]ACKNOWLEDGEMENT

I would like to take this chance for thanking my study facilitator, friends and family for the support they provided and their belief in me as well as guidance they provided without which I would have never been able to do this research.

Executive Summary

The following paper discusses about the investment analysis by taking decisions on the basis of Portfolio analysis. The paper consists of various criteria on which the decision is dependent like variance, return, standard deviation, coefficient of variance. Here, the benchmark for the selection of market firm rather than the federal bonds, because of the maximum return is given by the market rather than the government bond, though the risk in government bond is minimum. The following paper also discusses maximization of return by minimizing the risk, and with what percentage of return the risk is increasing. These criteria will lead to the diversified portfolio, in which individual can have maximum return and minimum risk.

ACKNOWLEDGEMENT1

Executive Summary2

Portfolio Management5

Introduction5

Discussion5

Objective of the Study5

Scope of the Study5

Methodology of the Study6

Primary Data6

Secondary Data6

Broad Investment Objectives6

Target Return7

Level of Risk in the proposed portfolio and its risk management8

Investment Constraint8

Time Horizon8

Liquidity Needs8

Consideration of Tax9

Legal Requirements9

Unique Needs and Preferences9

Investment Mandate9

Investment Strategy10

Methodological Issue11

Suitability of Assets for Investment Strategy15

Correlation between Securities17

Portfolio Constrction17

Portfolio including Risky Assets17

Portfolio include Risky and Risk Free Assets18

Comparison of Portfolio20

Portfolio including Risky Assets20

Portfolio include Risky and Risk Free Assets21

Managing Strategies in the next few weeks22

The Optimal Portfolio22

Conclusion26

References27

Portfolio Management

Introduction

The purpose of study is to evaluate the fluctuations in share price of the firms by various firms. This study will help an investor to invest in securities with having minimum risk and maximum return. Updating portfolio reviewed and being adjusted in tune with on a timely basis along with market conditions along with analysis of risk.The need to study the portfolio testing instead of taking decisions.

Discussion

Objective of the Study

The objectives of Portfolio can be characterized as follows.

Observing Fluctuation rate of selected organizations.

Risk factors involved in investing in various firms.

Making a comparative study of risk and return that are involved in investing in these firms.

Scope of the Study

All the information that are related with the Portfolio Management are covered along with the risk factors that are involved in investing in different companies or shares.

Identification of objectives of investor, preferences and constraints.

Reducing the risk factors involved in the future in advance.

Earning maximum profit in the securities.

Monitoring and reviewing the portfolio performance.

Evaluation of the portfolio.

Methodology of the Study

Primary Data

The firm data is being analyzed using Markowitz model for the determination of an efficient asset with maximum return portfolio. For instance,

Return

Correlation coefficient

Standard Deviation

Secondary Data

Data used in the project has secondary nature. The data has been collected form secondary sources such as websites, journals, books, newspapers and other secondary sources. The analysis that is being used in the project is being done using technical tools. The shares prices of the firms are collective and are ...