Investment In Portfolio (original) (raw)

An study on investment strategy based on security analysis

International Journal of Advance Research and Innovative Ideas in Education, 2017

There are investment alternatives available for the investors to invest their savings for the future use. The security analysis is use to invest their money in the best stock avenues. The focus area of the project is to analyse shares by using fundamental analysis and studying portfolio diversification and Risk-Return relationship. The purpose behind this project was to learn the operations of the stock market trading and to understand the basic difference between speculation in the stock market and some study based investment undertaken to derive value. The area of field study is confined to Chennai city, various investors have been examined in order to security analysis using questionnaire for sample survey method, recording and analysing the response and by adopting statistical tools. The data collected through questionnaire are tabulated and the information is interpreted table. Statistical tools like chi-square, ANOVA one way, T test, percentage analysis. Through these analysis...

Development, Implementation and Evaluation of Multistage Investment Strategies

Engineering Economics, 2012

Construction of optimal investment portfolio is very complicated task due to many diverse factors which might affect risk and return of the portfolio in the future. Values and impact level of unique factors on the portfolio are changing over time; therefore every investor should take into account the fact that there always will be a certain level of risk associated with any portfolio involving stocks. There is a number of ways to form a collection of most appropriate stocks and bonds for investment portfolio as well as to allocate weights of assets based on various criteria. All of these methods, dedicated for selection and allocation of assets, have their specific features and some disadvantages. In order to be able to conclude which of the asset selection methods have least disadvantages, four popular techniques were analysed and compared. These techniques were based on different variables: correlation coefficients between asset returns, maximisation of the utility function (diverse values of risk aversion coefficients were analysed), selection of assets with highest historical returns, and employment of modified priceto-earnings ratio. The article deals with multistage extension to the mean-variance and expected utility maximisation portfolio choice. Multistage investing consists of several essential stages, where each stage forms a basis for the next stage by providing useful input data, derived by stage-specific analysis. For construction of optimal portfolio the following stages are used: asset allocation, security selection, investment strategy development, construction of the model and its evaluation. After asset allocation was made and stocks for the portfolios had been selected, different theoretical asset allocation models (equal weight asset allocation, Markowitz model, Capital Asset Pricing Model (CAPM), model where risk free asset is incorporated when constructing a portfolio) have been modified and adapted in order to become suitable for real market situation. Such prerequisites as normal distribution of stock returns were not satisfied by most Lithuanian companies' stocks when different interims were investigated, therefore authors set a presupposition that distribution properties of the stocks can be disregarded when Markowitz and CAPM models were applied to real market. Some other changes for the prerequisites of models were made; otherwise these theoretical models could not have been applied to Lithuanian market. After all models had been applied in Lithuanian equity market, back testing was carried out and certain characteristics of outcomes of different investment strategies were compared. Results were judged against characteristics of popular stock exchange indices of Baltic States in order to obtain conclusions. Most models were developed for broad financials markets (global markets). In the paper we analyse financial market of Lithuania. Since this market does not fit assumed conditions of general models, the models were slightly modified to apply for Lithuania market. The results of portfolio were compared with Baltic States index. It was concluded that the highest return rate is achieved by constructing the investment portfolio with employing modified Capital Asset Pricing Model. The best technique for selecting stocks proved to be the maximisation of utility function when risk aversion coefficient A=3. In addition to this, after comparison of different asset selection methods, it was noted that the highest value of the Sharpe ratio was achieved by utilising the same technique. After investigation it was noted that investors should add a risk free asset into portfolio of stocks because it usually improves the results of most portfolios, irrespective of their contents. Constructing portfolios based on asset allocation according to indices analysed in the paper is not recommended because characteristics of indices were worse than the ones of constructed portfolios. Stocks of every company quoted in NASDAQ OMX Baltic (2011) Stock Exchange in Vilnius Official list for more than 10 years (2001 beginning -2010 end) were investigated. Stocks of 14 companies satisfied preset 10 year interim criterion.

The Need for Efficient Investment: Fundamental Analysis and Technical Analysis

SSRN Electronic Journal, 2000

Investment opportunities are plenty, but not all are profitable. This papers seeks to clarify the need to make a proper fundamental analysis when investing in various securities. Fundamental analysis does not require one to be a financial analyst so as to detect high risk assets or assets with a good return in the future. Traders typically approach financial markets in one of two ways: either through technical analysis or fundamental analysis. Technical analysis uses historical stock statistics, usually price and volume data, to forecast future prices, while fundamental analysis tries to predict a stock's intrinsic, or 'fundamental' value, and looks for opportunities where the live price deviates from the calculated intrinsic price. Efficient investment involves the use of both fundamental analysis and technical analysis.

Investing in Shares – a Possibility of Financial Investment

2007

This paper presents the basic qualities of an investment in shares. First, there are described the ground rules of the financial investments and then are detailed the investments in shares. There are presented the fundamental analysis and the technical analysis of a share and trying to find a method to optimize the conditions of a transaction in the Stock Exchange.

INVESTMENT DECISION MAKING METHODS ON STOCK MARKET-dlsuber

DLSU Business & Economics Review 28(3) 2019, pp. 104-108, 2019

The objective of this library research is to analysis decision making methods on stock. There are a lot methods to making decision on stock. Sometimes investor need information to make decision making, sometimes the investor do not need information they just used intuitive. Others used according to their behaviour. Making decision on stock price need feeling or calculation time to sell or buy. If investor can sell with right time may the investor will get gain.Making the right and right decisions on stock investments in the capital market requires the ability to do careful analysis. The ability to read the market and the factors that influence the market are needed to make decisions on the right stock investment in the market. Investor decisions are inseparable from financial behavior. behavior is now a worldwide phenomenon today. Prudent decision on stock market needs a good skill to analysis when buy or sales stock. Financial The right decisions on stock investments in the capital market requires the ability to do careful analysis. Financial behavior is now a worldwide phenomenon today. Prudent decision on stock market need a good skill to analysis when buy or sales stock. Decision making by irrational investors is increasing. But they need to be accompanied by reliable fiduciaries. The increasing number of social media users and peer groups that can produce quality information can increase investor confidence to make decisions that do not make them disappointed.

Implementation and Evaluation of Multistage Investment Strategies

2012

Proposal of Investment Portfolio of Hedge Fund

The 7th International Scientific Conference "Business and Management 2012". Selected papers, 2012

This paper deals with the Hedge Fund as a alternative investment opportinuty. The key of Hedge Fund success is stable and robust investment strategies with high focus on risk management. This paper describes one part of all Hedge Fund investment portfolio. Purposed strategy use foreign exchange pairs (USD.JPY and GBP.USD) as a financial instrument for decision making. As a main tool for proposing of this investment strategy is software MATLAB, which include financial and statistical toolbox and is connected to broker for decision making realization in real time. The key is to purpose low volatility investment strategy with low risk and diversification with other investment strategies.

Investment In Portfolio (original) (raw)

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