This document discusses portfolio evaluation and performance measurement. It defines a portfolio as a grouping of financial assets such as stocks, bonds, and cash that are held by investors or managed professionals. Portfolio performance is measured based on factors like return, risk, liquidity, and diversification. Common measures used for evaluation include Treynor's measure, Sharpe's measure, and Jensen's measure. The efficient market hypothesis and random walk theory are also discussed.
4. A GROUPING OF FINANCIAL ASSETS SUCH AS
STOCKS, BONDS AND CASH EQUIVALENTS, AS WELL
AS THEIR MUTUAL, EXCHANGE-TRADED AND
CLOSED-FUND COUNTERPARTS. PORTFOLIOS ARE
HELD DIRECTLY BY INVESTORS AND/OR MANAGED
BY FINANCIAL PROFESSIONALS.
MEANING
OF
PORTFOLIO
8. BIG THREE PVT.LTD
PORTFOLIO AVG.RETURN RATINGS
COLGATE 15% *****
COCA-COLA 12% ****
MORGAN 10% ***
BUSCH 12% ****
-A RATINGAGENCY
* WE PROVIDE RATINGS ON OUR ASSUMPTIONS ON
WEEKLY BASIS
18. RANDOM WALK THEORY
Random walk theory is based on independent behavior
of new prices of information that are received.
19. ARBITRAGE PRICING THEORY
Arbitrage means, the simultaneous buying and selling of
securities.
This theory given by S.ROSS. says that Each security is
linked with multiple factor.
Returns gets influenced by several logical factors like GDP,
national income, personal income etc.
Each security can earn risk free economic profit if logically
buying and selling of securities is done
The profit rises when an investor construct a zero investment
portfolio with sure profit.
HOW DOES ARBITRAGE OPPORTUNITY ARISES?
When any investor takes quick opportunity of buying
and selling of securities in multiple market while earning
sure profits.
21. SPECIAL THANKS TO SHARDUL SIR FOR GIVING US
OPPORTUNITY TO PRESENT .WE HAVE TRIED OUR
BEST TO GRAB THIS OPPORTUNITY GIVEN BY YOU
WITH ALL OUR DEDICATION AND EFFORTS.
MADE BY:
SHRUTI
KUSUM
DAYA
RUCHIKA
ASHOK
JAGJIT
ANKIT
SUDESH
ABBAS
JUNAID