Top Menu

Tag Archives | Portfolio Management

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 […]

Sharpe Theory of Portfolio Management | Financial Economics

Markowitz Model had serious practical limitations due to the rigours involved in compiling the expected returns, standard deviation, variance, covariance of each security to every other security in the portfolio. Sharpe Model has simplified this process by relating the return in a security to a single Market index. Firstly, this will theoretically reflect all well […]

Modern Portfolio Theory: Basis and Strategies | Financial Economics

In this article we will discuss about:- 1. Meaning of Modern Portfolio Theory (MPT) 2. Basis of Modern Portfolio Theory (MPT) 3. Strategies 4. Mathematical Models. Meaning of Modern Portfolio Theory (MPT): MPT Postulates those savers are generally risk averse and try to reduce risk by all possible methods. The markets are perfect and absorb […]

hit counter