Portfolio analysis studies the performance of different portfolios under different circumstances (Reilly and Brown, 2011). It can also be defined as the analysis of company’s product market mix in order to determine the optimal allocation of the company resources.
Portfolio analysis includes all efforts made by a firm towards the achievement of the best trade off between returns and risk tolerance. Portfolio analysis also involves the quantification of the financial and operational impact of a given portfolio, and it is quite vital as it helps firms to evaluate the performance of their investments and the effective timing of its returns. Each portfolio consists of sub-unit. For example, the financial sector can be made up of several banks or the Airline industry can be made up of several airline companies. The analysis of each portfolio helps an investor in making a decision when investing. Most likely, a rational investor will choose the best portfolio and screen out the ones that are not essential based on objective criteria. A good portfolio is characterized by high returns on investment (Reilly and Brown, 2011). Portfolio analysis requires subjective judgment as it is not easy to segment different industries.
This report will analyze the performance of different portfolios that are displayed in FINVIZ to ascertain their trends at a particular time. Particularly, the analysis will be based on individual stock, the best and the worst performing portfolios. FINVIZ has several portfolios. Therefore, each industry has individual portfolios. Below is a table and a bar graph showing the performance of different portfolio listed in FINVIZ for a period of three months....
A good portfolio is characterized by high returns on investment (Reilly and Brown, 2011). Portfolio analysis requires subjective judgment as it is not easy to segment different industries. Description This report will analyze the performance of different portfolios that are displayed in FINVIZ to ascertain their trends at a particular time. Particularly, the analysis will be based on individual stock, the best and the worst performing portfolios. FINVIZ has several portfolios. Therefore, each industry has individual portfolios. Below is a table and a bar graph showing the performance of different portfolio listed in FINVIZ for a period of three months. No. Name Performance (Quarter) 1 Financial 5.87% 2 Industrial Goods 4.97% 3 Consumer Goods 4.84% 4 Services 3.62% 5 Healthcare 2.49% 6 Basic Materials 0.21% 7 Conglomerates -0.08% 8 Technology -2.95% 9 Utilities -4.06% Economic /Market analysis The contradictions that caused the 2008-2009 global recessions are not being resolved, and there is a possibility in the near future of another recession due to: •There are vast amounts of household debt, which are unpaid, particularly one for home mortgages. •The global capitalist crisis for example, most immediate European crisis, which will reduce exports in the U.S market and destabilize its financial system. •Introduction of a policy by the U.S government which forced expenditure at the federal, state and local level to be cut. As a result, the Gross domestic product (GDP) went down by almost one-half percent in 2011. It might also cause more harm in the future •Increased rates of unemployment, growing rate of inequality, the growing power of financial capital and growth driven by ...
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“Portfolio Analysis Assignment Example | Topics and Well Written Essays - 3250 Words”, n.d. https://studentshare.net/finance-accounting/13210-portfolio-analysis.
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ely identify and solve problems that exist within an organization, the manager in-charge and creating the systems diagrams must emphasize on three major areas of the system diagram, which are review system, requirement development, and comparison of system with existing models.
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Calculate the annualised mean return, standard deviation and correlation of the stocks. (5 marks)
d.) Calculate the expected return and standard deviation of this minimum variance portfolio (MVP). Plot the
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