Theories of Portfolio Management Risk Aversion Theory The theory that counts for being risk aversion highlights the fact that the investors always opt for such kinds of investments which are associated with the lowest level of risk. Every individual who plans to invest in something requires the maximum possible return but with the low level… Read More »
Portfolio Risk and Return – Managing Portfolio in the Light of Returns and Constraints The objectives associated with the returns are divided in to several different needs a few of which may include the following: Capital Preservation Preservations means to maintain a certain level, so capital preservation calls for maintaining a certain level of capital… Read More »
Security Analysis and Portfolio Management Security analysis helps portfolio managers in determining the value of assets in a portfolio. Therefore, Security analysis and portfolio management are closely related to each other. Portfolio management is the process which works to help the portfolio managers to manage all the investments possessed and to meet all the investment goals.… Read More »
Calculate Return on Investment Making Sense of ROI ROI is an acronym that stands for return on investment. It is the benefit that an investor gets from an investment he has made in a business or the market. Thus higher the ROI, the higher is the benefit from an investment. It is a good tool… Read More »
Cash Flow Forecasting Making Cash Flow Smooth and Easy Setting a target One of the best ways to have a good control over cash flow is to have a frequent forecast that is properly maintained. If the owner gets a weekly forecast, he can easily have an outlook for his business for the next year… Read More »
Understanding Cash Flow Management There are many aspects of managing finances of a company. One of these is cash flow management that looks after cash flow, whether inflows or outflows. Understanding this concept is essential to avoid any liquidity crisis in the business. If cash with a business runs low and there is no chance of… Read More »
Investment Management Approaches! Investments need to be managed accordingly in order to make things clear as well as professionally sound. The better is the management of your investment the best are the result from the investments. There are two different kinds of approaches to investment management discussed below:
Portfolio Risk and Reward Investment is always associated with two most important things namely, risks and returns and measuring both of these is always a crucial part of every investment. When it comes to the measurement of the risks and returns you may come across a number of measurement techniques of which Standard Deviation takes… Read More »
NPV vs IRR Every business comes across a number of decisions to be made on a daily basis regarding making investments in different projects. However, making these investments requires a huge analysis and consideration of a number of things.
Weighted Average Cost of Capital Definition and Formula The Weighted Average Cost of Capital is the calculation of the return a business has to pay per every penny being financed. Weighted Average Cost of capital takes into account the average of all the sources of finance being used by the business for the investment, it… Read More »