(41).---PORTFOLIO MANAGEMENT.

PORTFOLIO MANAGEMENT.

On our blog we will discuses next month About PORTFOLIO MANAGEMENT this will be one of the most important topic related to financial management STAY WITH US………….
Topics to be discussed-

INTRODUCTION (POST 42)
1. Definition.
2. Phases of wealth accumulation-investors life cycle.
3. Goal setting.
4. The policy statement.
5. Investment objectives.
6. Investment constraints.
7. The portfolio construction process.

PORTFOLIO THEORY. (POST 43)
1. Introduction.
2. The portfolio effect.
3. Correlation.
4. The two security portfolio.
5. Covariance and correlation.
6. Formula for the two security portfolio.
7. Two-security portfolios-effect of the correlation coefficient.
8. Combining a risky security and a risk-free security.

THE DIVERSIFIED SHAREHOLDER AND THE CAPITAL MARKET (POST 44)1. Mixing, many risky securities.
2. Efficient portfolio.
3. The market portfolio.
4. Constructing the capital market line.

THE CAPITAL ASSET PRICING MODEL (POST45,46,47)1. Introduction.
2. Systematic and non-systematic risk.
3. Systematic risk and return.
4. Establishing beta factors for individual securities.
5. Regression analysis.

1. Aggressive and defensive shares.
2. Some further CAPM examples.
3. Application of the CAPM to project appraisal.
4. Example of project appraisal.
5. Certainty equivalents.
6. CAPM conclusion.
7. Advantage of the CAPM.
8. Limitations of the CAPM.

THE ARBITRAGE MODEL (POST 48)

THE EFFICIENT MARKET HYPOTHESIS (POST 49,50)
1. Stock prices follow a random walk.
2. Stock prices respond to new information.
3. Assumptions underlying efficient capital markets.
4. The three forms of the EMH.
5. Empirical testing of the EMH.
6. Implications of the EMH.
7. Summary of EMH.