Archive | Portfolio Management

Random Walk Hypothesis: Assumptions and Tests | Financial Economics

In this article we will discuss about:- 1. Introduction to Random Walk Hypothesis 2. Random Walk Assumptions 3. Schematic Presentation 4. Test 5. Essence 6. Limitations. Introduction to Random Walk Hypothesis: There are theoretically three approaches to market valuation, namely, efficient market hypothesis, fundamental analysis and technical analysis. Under fundamental analysis, the share value depends on the intrinsic worth of [...]

By |2017-12-15T11:15:53+05:30December 15, 2017|Theories|Comments Off on Random Walk Hypothesis: Assumptions and Tests | Financial Economics

Markowitz Theory of Portfolio Management | Financial Economics

In this article we will discuss about:- 1. Introduction to Markowitz Theory 2. Assumptions of Markowitz Theory 3. Diversification 4. Criteria of Dominance 5. Measurement of Risk. Contents: Introduction to Markowitz Theory Assumptions of Markowitz Theory Diversification of Markowitz Theory Criteria of Dominance Measurement of Risk 1. Introduction to Markowitz Theory: Harry M. Markowitz is credited with introducing new concepts [...]

By |2017-12-15T11:15:53+05:30December 15, 2017|Portfolio Management|Comments Off on Markowitz Theory of Portfolio Management | Financial Economics

Analysis of Risk and Return on Portfolio | Investment | Financial Economics

Risk is uncertainty of the income/capital appreciation or loss of both. The two major types of risk are- Systematic or market related risks and unsystematic or company related risks. The systematic risks are the market problems, raw material availability, tax policy or any Government policy, inflation risk, interest rate risk and financial risk. The unsystematic risks are mismanagement, increasing inven­tory, [...]

By |2017-12-15T11:15:53+05:30December 15, 2017|Portfolio Management|Comments Off on Analysis of Risk and Return on Portfolio | Investment | Financial Economics
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