Investment Techniques To Reduce Portfolio Risks

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Issue:

Miscellaneous

 

Written by:

Theo P

 

Date added:

February 13, 2013

 

Level:

College

 

Grade:

A

 

No of pages / words:

1 / 173

 

Was viewed:

1351 times

 

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Essay content:

In this case, investors should select portfolios not individual securities. When we do investment, expected values, standard deviations and correlations always mentioned. Based on them, it is easy to calculate the expected return and volatility of any portfolio constructed with those securities. Moreover, we can select certain ones of the entire universe of portfolios will optimally balance risk and reward...
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Based on them, it is easy to calculate the expected return and volatility of any portfolio constructed with those securities. Moreover, we can select certain ones of the entire universe of portfolios will optimally balance risk and reward. An efficient frontier of portfolios can be made with those components, and then the investor can choose the best portfolio which depends on the efficient frontier...
displayed 300 characters

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