...
B
r
A
Investment Analysis and Portfolio Management
36
Variance and the standard deviation are similar measures of risk and can be
used for the same purposes in investment analysis; ...
Investment Analysis and Portfolio Management
46
loss; (2) some form of income. The holding period return is the percentage increase
in returns associated with th...
...
b) 100% invest in stock B;
c) 50% in stock A and 50% in stock B;
d) 20% invest in stock A and 80% in stock B
e) 60% invest in stock A and 40% in stock B.
9. The following investment portfolios ... Ratio.
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4. Investment in Stocks
Mini-contents
4.1. Stock as specific investment.
4.2. Stock analysi...
... Psychology of Investing. 3rd ed. Pearson/Prentice
Hall.
12. Nofsinger, John (2001). The Impact of Public Information on Investors // Journal
of Banking and Finance, 2001, 25, p. 133 9- 136 6.
13. Shapira, ... Seongyeon (2006). Do Investors Integrate Losses and Segregate
Gains? Mental Accounting and Investor Trading Decisions. // Journal of Business,
2006, 79, p. 2 539 -25 73.
11...
...
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1. Investment environment and investment management process
Mini-contents
1.1. Investing versus financing
1.2. Direct versus indirect investment ... environment and investment process;
2. Quantitative methods of investment analysis;
3. Theory of investment portfolio formation;
4. Investment in stock...
... Investment Analysis and Portfolio Management
29
• Investment
• Investment environment
• Investment vehicles
• Investment management
process
• Investment policy
• Investment ... assets in which to
invest and determining the proportions of these financial assets in the investment
portfolio.
Formation of diversified investment portfolio is the ne...
... always
Investment Analysis and Portfolio Management
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3. Theory for investment portfolio formation
Mini-contents
3. 1. Portfolio theory.
3. 1.1. Markowitz portfolio theory.
3. 1.2. The ... risk-free investment is introduced into the
universe of assets, the efficient frontier becomes the tagental line shown in Fig. 3. 3 this
line is called the Capital Ma...
... the intrinsic value of
stock is valuated at the same range as in the market and its current market price
shows the intrinsic value.
Investment Analysis and Portfolio Management
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5. Investment ... average dividend income.
Analysis of economic forecasting. Investors by forecasting changes in the macro
economy and in interest rates endeavor to decrease the inv...
... negative influence to the interest rates (from the
investors in bonds position - decrease in interest rates):
• Decrease in investments;
• Increase in savings level;
• Decrease in export;
• Increase ... such a portfolio is lower also.
Investment Analysis and Portfolio Management
1 03
• The level of inflation; the inflation decreases the purchasing power of the...
... why.
a) Increase in investments;
b) Increase in savings level;
c) Decrease in export;
d) Decrease in import;
e) Increase in government spending;
f) Increase in Taxes.
6. Distinguish between ... accounting and investing
6.5. Emotions and investing
Summary
Key terms
Questions and problems
References and further readings
The finance and investment decisio...
... factor in building such an optimal
portfolio. Investors are looking to have in their portfolios asset classes that are
Investment Analysis and Portfolio Management
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P
n
Face value (nominal ... Portfolio concentration and
investment performance // Journal of Banking and Finance, spring.
5. Brands, S., Gallagher, D.R., Looi, A. (20 03) Active investment mana...