ABSTRACT Modern portfolio managers find themselves facing an increasingly challenging situation with global asset allocation. The concept of traditional asset classification has been constantly questioned yet no consensus has been reached upon in either real practice or academia. Our research attempts to answer the question of whether or not the traditional asset class definition could prove to be optimal in terms of generating the best efficient frontiers‚ and if it exist alternatives to reach
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ROLE AND PURPOSE This subject aims to introduce to students a range of basic concepts and ideas in modern finance. After completing this subject‚ participants should know the principles involved in making investment and financing decisions‚ understand functions of financial markets and financial managers‚ and possess basic knowledge of option pricing and financial planning. This foundation course prepares students for more in‐depth studies at a later stage. LEARNING OUTCOMES Upon completion of the
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valuation: "the firm-foundation theory" and the "castle in the air theory". The firm foundation theory argues that each investment instrument has something called intrinsic value‚ which can be determined analyzing securities present conditions and future growth. The basis of this theory is to buy securities when they are temporarily undervalued and sell them when they are temporarily overvalued in comparison to there intrinsic value One of the main variables used in this theory is dividend income. A stocks
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uk/essays/finance/portfolio-construction-using-markowitz-model.php#ixzz2pXClJYCO (accessed January 6‚ 2014). Grubel‚ H. G. 1968. ‘‘Internationally diversified portfolios.’’ American Economic Re_iew 58:12:1299_1314. Sharpe‚ W. 1964. ‘‘Capital Asset Pricing: A Theory of Market Equilibrium under Conditions of Risk.’’ Journal of Finance 19:424_447. "OECD." OECD. http://www.oecd.org/investment/investmentfordevelopment/2764407.pdf (accessed January 1‚ 2014). "Dow Jones Industrial Average: INDEXDJX:.DJI quotes & news
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be rich. We should start with realistic expectations‚ and knowing what to avoid is as important as knowing what to do. You should also note that FINA 460 covers theoretical topics such as the modern portfolio theory and efficient market hypotheses as well as practical aspects of investing. Those theories may not provide a great practical investment value‚ but these topics provide useful background information. This course emphasizes a quantitative and problem-solving approach to enable you to
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References: Eugene F. Fama and Kenneth R. French (2004). Capital Asset Pricing Model: Theory and Evidence. Journal of Economic Perspectives‚ Vol. 18‚ No.3‚ p25-46. Andre F. Perold (2004). The Capital Asset Pricing Model. Journal of Economic Perspectives‚ Vol. 18‚ No.3‚ p.3-24. Robert C J. Howard Finch‚ Steve P. Fraser and Steven R. Scheff
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appointment) Class Time: Tuesday 08:45-11:30 OBJECTIVE: This course focuses on modern investment theory and its application to the management of entire portfolios. It will consist of lectures‚ discussions of cases and articles‚ and video presentations. Topics include: a) construction of optimal asset portfolios using techniques such as the single index model‚ b) extensions of the capital asset pricing model: theory and tests‚ c) criteria for evaluation of investment performance‚ d) active vs. passive
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Bibliography: Journal Publications Jecheche Petro’s‚ “An empirical investigation of Markowitz Modern Portfolio Theory - A case of the Zimbabwe Stock Exchange”‚ Journal of Case Research in Business and Economics (2008) Chance et.al‚ “Experimental Evidence on Portfolio Size and Diversification: Human Biases in Naıve Security Selection and Portfolio Construction”
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diversification was a term familiar with most investors. The concept of the term suggested that putting all of your eggs in one basket was a risky decision. (Bodie‚ Kane and Marcus‚ 2009) Efficient diversification was an organizing principle of modern portfolio theory‚ which largely defined by the work of Harry Markowitz (1991)‚ maintaining that any risk-averse investors would pursue after the highest expected returns for any particular level of portfolio risks. Essential efficient diversification meant
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DECLARATION I here by declare that the project entitled “PORTFOLIO MANAGEMENT AND INVESTMENT DECISION” Submitted for partial fulfillment for the award of Degree of MASTER OF BUSSINESS ADMINISTRATION is entirely original and Has not Been Submitted earlier by any one for any Degree or Diploma. DATE: PLACE: Objectives and methodology Aim of the study: The
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