This section on foundations of Information systems in Business presents an overview of the five basic areas of information systems knowledge needed by....
With the passage of time the stocks which were attractive once may turn out to be less attractive in terms of return. The investor’s attitude toward....
According to this plan, at varying levels of market price, the proportions of the stocks and bonds change. Whenever the price of the stock increases, ....
Constant ratio plan attempts to maintain a constant ratio between the aggressive and conservative portfolios. The ratio is fixed by the investor. The ....
The proportion of money invested in each component depends on the prevailing market condition. If the stock market is in the boom condition lesser fun....
Active Management is holding securities based on the forecast about the future. The portfolio managers who pursue active strategy with respect to mark....
Passive management is a process of holding a well diversified portfolio for a long term with the buy and hold approach. Passive management refers to t....
The care taken in the construction of the portfolio should be extended to the review and revision of the portfolio. Fluctuations that occur in the equ....
The absolute risk adjusted return measure was developed by Michael Jensen and commonly known as Jensen’s measure. It is mentioned as a measure of ab....
To understand the Treynor index, an investor should know the concept of characteristic line. The relationship between a given market return and the fu....
The Association of Mutual Funds in India (AMFI), a non- profit organization serving the cause of mutual funds, has listed the following advantages to ....
Portfolio manager evaluates his portfolio performance and identifies the sources of strength and weakness. The evaluation of the portfolio provides a ....
The existence of the risk free asset yields a risk free rate of return that is a constant. The asset does not have sensitivity to the factor for exa....
Arbitrage pricing theory is one of the tools used by the investors and portfolio managers. The capital asset pricing theory explains the return of the....
Investors are interested in knowing the systematic risk when they search for efficient portfolios. They would like to have assets with low beta co-eff....
The procedure used to calculate the optimal portfolio when short sales are allowed is, more or less similar to the procedure adopted for no short sale....
After determining the securities to be selected, the portfolio manager should find out how much should be invested in each security. The percentage of....
Portfolios have the common objective of financing present and future expenditures from a large pool of assets. The return that the investor requires a....