International Financial Markets paper - Essay Example

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International Financial Markets paper

This has led the investors to think about collective investment to set off the risk from one investment with the return from another investment. This was formally called portfolio and many theories have been developed thereafter to facilitate portfolio management. This paper discusses some of the important concepts of modern portfolio management. The paper takes a descriptive approach where all the concepts are described in such a way how they are useful for investors.
Investors always seek for an optimal investment portfolio where the returns are more and risk is less. This can be met through Portfolio Theory. The Theory helps in developing an optimal portfolio that will enable an investor to optimize market risk and generate more return from the business. Thus Portfolio theory is an approach to manage risk and return. The Theory has got much relevance in of financial management literature as many investors found them effective means of increasing the return at a given risk level. ...
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Summary

Investment management has been very helpful for investors of all types and risk categories. It is known to everybody that risk and return are inversely related and therefore every investor tries to increase their return by investing in risky securities. However, this need not always be good as there can be chances of unforeseen events in the market that can lessen the chance of increasing return even for high risk projects…
Author : lavonmorissette

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