.What are the techniques used to measure the amount invested, current income, capital gains, and total portfolio return relative to the amount of money actually invested in the portfolio?
1- In your opinion, what is the importance of portfolio revision and the role of common types of formula plans in timing purchase and sale decisions. What is your take on progression of the Markowitz portfolio model into the capital market theory? Are you applying it in your own portfolio project? .
2.What are the techniques used to measure the amount invested, current income, capital gains, and total portfolio return relative to the amount of money actually invested in the portfolio? Do you think that Statistical measures and uses like Sharpe’s, Treynor’s, and Jensen’s Information ratio measures are effective to measure portfolio return?
3.Discuss the investment process and the general steps relating to it. Briefly discuss the three phases in the investor life cycle. Explain the dilemma posed when attempting to measure the risk tolerance or preferences of a client, especially as it relates to (a) indifference or utility curves and, (b) Prospect Theory What is the importance of every financial advisor creating an investment policy statement for each client
4.What is the duration of a bond? How was duration considered in the selection of bonds in your portfolio management project? Contrast the differences between option writing and option buying? How would you have considered the selection if NOT used in your portfolio?
5.Briefly explain why having similarly correlated assets in a portfolio may actually be more risky than having assets with a low degree of correlation. Describe how historical and expected relationships between assets aid in the generation of an “efficient frontier” of potential portfolios for consideration.
Distinguish between strategic asset allocation and tactical asset allocation. Briefly explain how the “January effect” anomaly contradicts the efficient market hypothesis or theory. Give examples to substantiate your answer.
6.How is the current Investment News of Ali Baba and Yahoo’s collaboration as well as the Initial Public Offering of the Company in US Markets? How it may affect the Investment possibilities of many investors in USA? How would you evaluate the effect of latest Ecoli scare at some Chipotle’s restaurants on their stock prices?