Project Portfolio By Measuring Management -Myassignmenthelp.Com

Question: Discuss About The Project Portfolio By Measuring Management? Answer: Introducation Portfolio management is science and art strategy for marketing decisions regarding the investment policy and strategies with regard to the investment objectives, balancing the risk in exchange of return and appropriate asset allocation for institutions and individuals; Various strategies are there that can be regarded as relevant if they are properly managed by the investors for increasing their return from portfolio over the time[1]. Apart from that, widely used strategies for active portfolio are the value screening strategy and the market timing strategy. These strategies can help the investors to improve their return[2]. Further, the investors may use the analysis of the financial statement to assess the performance of the stock and build the portfolio with preferable stock. However, using both the strategies mentioned above will assist the investor to improve their return from the active portfolio[3]. However, for passive portfolio both the strategies are not used. Strategies ar e elaborated below Screening strategy 10 stocks have been tracked and developed for screening strategies on the basis of their investment approaches. The screening strategy used by the companies where the relevant valuations are used by the investors for utilizing the information appropriately derived from the stock to improve the return. The screening strategy takes into consideration various factors like dividend income, P/E ratio, return on assets and return on equity, associated risks for evaluating the stock. The strategy also helps to recognize the investment opportunities, standard deviation that is risks of the stock to find out the ways for improve the return. This strategy is popular with the investors as it can assist in creating the appropriate portfolio that will give maximum return with minimum risk. Marketing timing strategy Market timing is the strategy used by investors under which he tries to recognize best times to enter the market and get out of the market depending on the market analysis and forecasts; the market timing is generally used by the financial analysts, brokers and the managers for portfolio for reaping the highest return for their clients[4]. Proper timing requires investors to assess when to enter 100% in the market and when to out 100% from 1 out of 3 classes of assets that are the money markets, bonds and stocks. Further, with the help of marketing strategies the investors can decide regarding the movement of assets from the weights of portfolio. Further, on the basis of expected movement of market and the probability of the return against risk, return can be assessed for each class of assets [5]. Therefore, both the strategies can be directly used for improving the return under active portfolio and constructing an appropriate portfolio. The market timing helps to identify the relevant opportunities associated with investment for increasing the return[6]. On the other hand, the screening strategies are used to recognize overall opportunities exist in the capital market. However, there is no particular strategy that can be used to construct the most appropriate portfolio. Therefore, using both strategies will assist the investors to construct an appropriate portfolio that will assist in getting maximum return with minimum risk[7]. Evaluation and comparison of result with regard to the passive and active portfolio returns Active portfolio Portfolio Return 0.444 -0.227 -0.687 -0.332 -0.445 -0.283 -0.474 Transaction Fees -0.02 -0.02 Net Return 0.424 -0.227 -0.687 -0.332 -0.445 -0.283 -0.494 Portfolio Value 50.00 50.424 50.197 49.510 49.178 48.733 48.450 47.956 Passive portfolio 2011 2012 2013 2014 2015 2016 2017 Investment Return Weighted Return Return Weighted Return Return Weighted Return Return Weighted Return Return Weighted Return Return Weighted Return Return Weighted Return SRI INDEX 25.00 -0.011% -0.003 -2.292% -0.573 -1.434% -0.358 -1.522% -0.381 -0.054% -0.014 -1.118% -0.280 -1.498% -0.374 10 yr. BOND 25.00 -5.144% -1.29 -3.595% -0.90 -3.467% -0.87 -3.848% -0.96 -2.742% -0.69 -2.375% -0.59 -2.659% -0.66 Portfolio Return -1.29 -1.47 -1.23 -1.34 -0.70 -0.87 -1.04 Annual Fees -0.125 -0.125 -0.125 -0.125 -0.125 -0.125 -0.125 Net Portfolio Return -1.41 -1.60 -1.35 -1.47 -0.82 -1.00 -1.16 Portfolio Value 50.00 48.59 46.99 45.64 44.17 43.35 42.35 41.18 From the above analysis it is conclude that the above table reveals that with active portfolio the the value of the portfolio has been reduced from 50 to 47.96. On the contrary, the value of passive portfolio investment has been reduced from 50 to 41.18. Therefore, the reduction in value from passive portfolio is more by 6.78[8]. Analysis based on the theory Under the active portfolio, the investor has the option of covering up the reduction as all the 20 stocks have been selected from SRI stocks[9]. However, under passive portfolio there are no back up stocks for covering up the reduction as 10 stocks have been selected from SRI stocks and 10 stocks have been selected from non-SRI sticks[10]. Thus it is recognized that the relevant theory is required for constructing the efficient portfolio based on the market hypothesis. The SRI index and risk free rate have lower return as per the above calculation. The reason behind this is that the reduction in the screening from the analysis of 10 year bonds and that reduced the portfolios overall portfolio. Further, the losses from the risk free rate and SRI index is higher that reduced the overall value of the portfolio. Therefore, it is assumed that the strategies support the active portfolio that neglects the entire passive portfolio. Reference Aouni, Belaid, Cinzia Colapinto, and Davide La Torre. 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