Portfolio Analysis and Investment Management

Portfolio Analysis and Investment Management Essay example
Finance & Accounting
Pages 5 (1255 words)
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Part I As an individual investor there are a variety of factors that one must take into consideration when choosing to build a well diversified targeted investment portfolio that best suits the financial objectives of the individual investor. In order to match the right investment profile that best suits their financial objectives we must take into consideration the time span of their investment window and their investment goals, the investor’s level of “risk aversion” or how much of a potential higher financial return an investor requires in order to assume the risk of the investment, the types of financial instruments available to the individual investor that best suit their financial


First we must as an individual investor consider the timeframe of the investment, the level of acceptable risk that an individual is willing to undertake and how this will translate to building their ideal investment portfolio. One must become familiar with the intricacies of each financial instrument in order to determine the best way to implement this type of investment in a well diversified portfolio 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. ...
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