Please boost your Plan to download papers

Got a tricky question? Receive an answer from students like you!
Try us!

#
Essay example - investment and portfolio analysis

Essay

Finance & Accounting

Pages 6 (1506 words)

Investment and portfolio analysis Tutor Date: 1. The five different measures of risk adjusted Portfolio Performance; the and how each of these measures defines the risk that investors face. The five of the different measures of risk adjusted portfolio performance include; Treynor ratio, Sharpe ratio, Information ratio, Jensen alpha and Sortino ratio…

Get more done in less time

Let us write a custom essay on your topic

“investment and portfolio analysis” with a personal
15% discount.

Order now
## Extract of sample

On the contrary, Sharpe ratio refers to a measure of risk adjustment measure that utilizes standard deviation when computing portfolio returns and inherent risk associated with a particular portfolio (Ctaff, 2012). Empirical research asserts that if Sharpe ratio is higher it implies returns are better. Therefore, by utilizing standard deviation, Sharp ratio assumes that the relevant risk is total risk unlike Treynor ratio which assumes that the relevant risk is systematic (Ctaff, 2012). Both Treyon and Sharpe ratios are similar; however, the two measures differ in terms of how they determine of risk volatility. Whereby, Treyon ration utilizes beta while Sharp ratio tend to utilize standard deviation (Anric, 2013). Information ratio measures the ability of corporate managers to utilize skills/ luck to generate excess returns beyond the established benchmark. This ratio utilizes alpha elements as well as standard deviation to measure volatilities associated with a particular portfolio (Reilly and Brown, 2012). Therefore, information ratio assumes that the relevant risk is total where both systematic and unsystematic risks are combined (Harkins, 2012). ...

Download paper
Not exactly what
you need?

### Related papers

Investment Portfolio
He does receive a cost of living adjustment on an annual basis of 3.5%. His wife works part-time as a freelance photographer; however, her pay is considered supplemental income, as her workflow is not deemed steady enough to cover anything more than the car payments for their two teenage children, ages 17 and 16. Both children also have 529 plans established, gifted to them by their grandparents…

Investment analysis
Efficient Markets Theory The theory is based on the assumption that information available in the securities market such as price levels is extremely efficient in reflecting the performance of the assets in the market. The general view regarding the theory is that information spreads in the shortest time possible and gets incorporated in the prices of assets in the market (Hughes, 2005, p. 118).…

Investment analysis
Analysis: Moments of distributions Asset Type Symbol Volatility Expected Excess Growth Rate Skewness Kurtosis Excess Asset ANZ.AX 23.59% -5.54% -0.18 3.46 Asset BHP.AX 24.21% -9.58% -0.08 0.91 Asset BOQ.AX 27.08% -24.81% -0.07 0.54 Asset HVN.AX 27.02% -34.38% -0.02 1.69 Asset TLS.AX 19.52% 1.48% -1.04 9.31 Asset WOW.AX 15.13% -10.19% -0.18 4.26 Factor ASX300 17.49% -10.41% -0.15 0.81 Volatility…

Portfolio Analysis.
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…

Portfolio Analysis and Investment Management
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 Theory and Investment Analysis
wa + wb + wc = 1. E(rp) = waE(ra) + wbE(rb) + wcE(rc ) 0.6(-0.2) + 0.3(0.1) + 0.1(0.04) = -0.086 Hence the strategy before the 2007 economic crisis would have realised an expected return of -8.6% on investment. The strategy adopted from 2007 onwards in the light of the crisis would realise: E(rp) = waE(ra) + wbE(rb) + wcE(rc ) 0.4(-0.2) + 0.4(0.1) + 0.2 (0.04) = -0.032 The strategy adopted after…

Investment and Portfolio Management
ry 21 Infrastructural Sector 22 Automotive Sector 22 Estimation of Beta-Coefficient 22 Macro-Economic Analysis 23 Portfolio Management Strategies 24 Significance of Diversification 25 Portfolio Performance Analysis 26 Apple Inc 26 Citigroup 27 General Motors 28 Chicago Bridge & Iron 29 Pfizer 31 References 33 Appendices 34 Table 6 – Financial Statement Analysis of Apple (AAPL) 34 Table 7 –…