PORTFOLIO MANAGEMENT

I wrote this book Portfolio Management with the following objectives.

·        To demonstrate to readers that the subject of Portfolio Management simple to understand, relevant in practice and interesting to learn.

·        To help managers appreciate the logic for making better financial decisions.

·        To explain the concepts and theories of Portfolio Management in a simple way so readers could grasp them very easily and be able to put them in to practice.

·        To provide a book that has a comprehensive coverage for Portfolio Management and its analysis.

·        To create a book that differentiates itself from other books in terms of coverage, presentation.

This book useful to Students, Job Interviews, Investors, Financial advisers, Financial managers and Fund managers to relate theories, concepts and data interpretation to practice.

This book Portfolio Management aims to assist the reader to develop a thorough understanding of the concepts and theories underlying Portfolio Management in a systematic way. To accomplish this purpose, the recent thinking in the field of finance has been presented in a most simple, and precise manner.

The main features of the book are simple understanding and key concepts.

The book contains a comprehensive analysis of topics on Portfolio Management with a view that readers understand financial decisions thoroughly well and able to evaluate their implications for shareholders and the company.

This book begins with the discussion of fundamental concepts of Portfolio Management. With this foundation, readers can easily understand the portfolio, diversification, decision criteria necessary to manage the funds and create and enhance the value of the firm.

The text material has been structured to focus on Portfolio Management is in the financial decisions making process.

The book discusses the theories, concepts, assumptions, underlying financial decisions i.e. investment, financing.

It is hoped that this will facilitate a better understanding of the subject matter.

 

CONTENTS

 

1. MEANING OF PORTFOLIO

2. MEANING OF DIVERSIFICATION

3. PROCESS OF PORTFOLIO MANAGEMENT

  A. MEANING OF PORTFOLIO MANAGEMENT

  B. STEPS IN PORTFOLIO MANAGEMENT

    i. Identification of objectives and constraints

    ii. Selection of Asset mix

    iii. Formulation of portfolio management

    iv. Security analysis

    v. Portfolio execution

    vi. Portfolio revision

    vii. Portfolio evaluation

4. PORTFOLIO RETURN AND RISK

  A. PORTFOLIO RETURN

  B. PORTFOLIO RISK

    i. Variance

    ii. Standard deviation

    iii. Difference between variance and standard deviation

  C. EXAMPLE WITH SOLUTION

5. MEASUREMENTS IN CO-MOVEMENTS IN SECURITY RETURNS

  A. COVARIANCE

  B. COEFFICIENT OF CORRELATION

  C. NOTES TO MEASUREMENTS

6. PROBLEMS WITH SOLUTIONS

    i. Problem 1 with solution

    ii. Problem 2 with solution

    iii. Problem 3 with solution