A portfolio is a combination of various investment products like stocks, bonds, and mutual funds that are selected by a portfolio manager based on a client's risk tolerance and financial goals. A portfolio manager evaluates a portfolio's performance over time using metrics like the Sharpe ratio, Treynor ratio, and Jensen's alpha to measure risk-adjusted returns. Portfolio revision involves changing the mix of assets in a portfolio, which may be done actively through frequent trades or passively according to predetermined formula plans that specify when and how to buy or sell assets based on market fluctuations.
Formula Plan in Securities Analysis and Port folio ManagementSuryadipta Dutta
Formula Plan in Securities Analysis and Port folio Management INCLUDING introduction,need, types, advantages with constant rupee value plan, constant ratio plan, Variable Ratio Plan, limitations and with every notes.
Security analysis comprises of an examination and evaluation of the various factors affecting the value of a security. Security analysis is about valuing the assets, debt, warrants, and equity of companies from the perspective of outside investors using publicly available information. The security analyst must have a through understanding of financing statements, which are an important source of this information. As such, the ability to value equity securities requires cross-disciplinary knowledge in both finance and financial accounting. While there is much overlap between the analytical tools used in security analysis and those used in corporate finance, security analysis tends to take the perspective of potential investors, whereas corporate finance tends to take an inside perspective such as that of a corporate financial manager.
Financial engineering is the quantitative methodology used for development of solutions to financial problems. It is often used for development of new financial products, such as an existing basket of vanilla financial products, or combining features of different financial products in a hybrid financial product, in order to enhance the yield or changing the risk aspects of the new product in accordance with the views of the client. The presentation on financial engineering and structured products is a presentation made at a conference regarding the products that have the unique feature of preserving the initial investment or a portion of initial investment along with the potential of increasing the yield of the investment.
Capital Structure Theories, Valuation of Shares & Efficient Market HypothesisSwaminath Sam
The presentation contains details on Net Income, Net Operating, Traditional and Modigliani & Miller Approach; valuation of shares i.e., different models for valuation of shares in particular CAPM; Efficient Market Hypothesis (EMH) & forms of hypothesis
Formula Plan in Securities Analysis and Port folio ManagementSuryadipta Dutta
Formula Plan in Securities Analysis and Port folio Management INCLUDING introduction,need, types, advantages with constant rupee value plan, constant ratio plan, Variable Ratio Plan, limitations and with every notes.
Security analysis comprises of an examination and evaluation of the various factors affecting the value of a security. Security analysis is about valuing the assets, debt, warrants, and equity of companies from the perspective of outside investors using publicly available information. The security analyst must have a through understanding of financing statements, which are an important source of this information. As such, the ability to value equity securities requires cross-disciplinary knowledge in both finance and financial accounting. While there is much overlap between the analytical tools used in security analysis and those used in corporate finance, security analysis tends to take the perspective of potential investors, whereas corporate finance tends to take an inside perspective such as that of a corporate financial manager.
Financial engineering is the quantitative methodology used for development of solutions to financial problems. It is often used for development of new financial products, such as an existing basket of vanilla financial products, or combining features of different financial products in a hybrid financial product, in order to enhance the yield or changing the risk aspects of the new product in accordance with the views of the client. The presentation on financial engineering and structured products is a presentation made at a conference regarding the products that have the unique feature of preserving the initial investment or a portion of initial investment along with the potential of increasing the yield of the investment.
Capital Structure Theories, Valuation of Shares & Efficient Market HypothesisSwaminath Sam
The presentation contains details on Net Income, Net Operating, Traditional and Modigliani & Miller Approach; valuation of shares i.e., different models for valuation of shares in particular CAPM; Efficient Market Hypothesis (EMH) & forms of hypothesis
Portfolio Investment can be understood easily.Sonam704174
Portfolio Investment can be understood as a bunch of different financial securities (including assets, stocks, government bonds, corporate bonds, mutual funds, other money market instruments, cash and cash equivalents, cryptocurrencies, commodities, and bank certificates of deposit.), bought with an expectation to gain either in the form of return or increased value, or both.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
1. What is a Portfolio ?
A combination of various investment products like bonds, shares, securities,
mutual funds and so on is called a portfolio.
In the current scenario, individuals hire well trained and experienced
portfolio managers who as per the client’s risk taking
capability combine various investment products and create a customized
portfolio for guaranteed returns in the long run.
It is essential for every individual to save some part of his/her income and put
into something which would benefit him in the
future. A combination of various financial products where an individual
invests his money is called a portfolio.
Who is a Portfolio Manager ?
An individual who understands the client’s financial needs and designs
a suitable investment plan as per his income and risk taking abilities is
called a portfolio manager. A portfolio manager is one who invests on
behalf of the client.
A portfolio manager counsels the clients and advises him the best
possible investment plan which would guarantee maximum returns to
the individual.
A portfolio manager must understand the client’s financial goals and
objectives and offer a tailor made investment solution to him. No two
clients can have the same financial needs.
What is portfolio Evaluation?
The Concept
Portfolio manager evaluates his portfolio
performance and identifies the sources of
2. strength and weakness.
The evaluation of the portfolio provides a feed
back about the performance to evolve better
management strategy.
Evaluation of portfolio performance is
considered to be the last stage of investment
process.
Sharpe’s Performance Index
Sharpe index measures the risk
premium of the portfolio relative to the
total amount of risk in the portfolio.
Risk premium is the difference between
the portfolio’s average rate of return
and the risk less rate of return.
Formula for
Sharpe’s Performance Index
St= Rp-Rf / Sigma (P)
Rp – Portfolio’s average rate of return
Rf – Riskless rate of return
σp - Standard deviation of the portfolio return
The larger the St, better the fund has performed
3. Treynor’s Performance Index
The relationship between a given market
return and the fund’s return is given by the
characteristic line.
The fund’s performance is measured in
relation to the market performance.
The ideal fund’s return rises at a faster rate
than the general market performance when
the market is moving upwards.
Its rate of return declines slowly than the
market return, in the decline.
Treynor’s Index Formula
Rp = + Rm + ep
Rp = Portfolio return
Rm = The market return or index return
ep = The error term or the residual
, = Co-efficients to be estimated
Beta co-efficient is treated as a measure
of undiversifiable or systematic risk.
Tn = Portfolio average return – Riskless rate of interest
Beta co-efficient of portfolio
Tn= Rp-Rf
Beta(P)
4. The larger the Tn, better the fund has performed
Larger Tn is more desirable because it earned more
risk premium per unit of systematic risk .
Jensen’s Performance Index
The absolute risk adjusted return measure
was developed by Michael Jensen.
It is mentioned as a measure of absolute
performance because a definite standard is
set and against that the performance is
measured.
The standard is based on the manager’s
predictive ability.
Jensen Model
The basic model of Jensen is:
Rp = + (Rm – Rf)
Rp = average return of portfolio
Rf = riskless rate of interest
= the intercept
= a measure of systematic risk
Rm = average market return
p represents the forecasting ability of
the manager. Then the equation
becomes
Rp – Rf = p + (Rm – Rf)
5. or
Rp = p + Rf + (Rm – Rf)
What is Portfolio Revision ?
The art of changing the mix of securities in a portfolio is called as portfolio
revision.
The process of addition of more assets in an existing portfolio or changing
the ratio of funds invested is called as portfolio
revision.
The sale and purchase of assets in an existing portfolio over a certain period
of time to maximize returns and minimize risk is
called as Portfolio revision.
Need for Portfolio Revision
An individual at certain point of time might feel the need to invest more. The
need for portfolio revision arises when an individual
has some additional money to invest.
Change in investment goal also gives rise to revision in portfolio. Depending
on the cash �ow, an individual can modify his
financial goal, eventually giving rise to changes in the portfolio i.e. portfolio
revision.
Financial market is subject to risks and uncertainty. An individual might sell
o� some of his assets owing to fluctuations in the
financial market.
Portfolio Revision Strategies
6. There are two types of Portfolio Revision Strategies.
Active Revision Strategy
Active Revision Strategy involves frequent changes in an existing portfolio
over a certain period of time for maximum returns and
minimum risks.
Active Revision Strategy helps a portfolio manager to sell and purchase
securities on a regular basis for portfolio revision.
Passive Revision Strategy
Passive Revision Strategy involves rare changes in portfolio only under
certain predetermined rules. These predefined rules are
known as formula plans.
According to passive revision strategy a portfolio manager can bring changes
in the portfolio as per the formula plans only.
What are Formula Plans ?
Formula Plans are certain predefined rules and regulations deciding when and
how much assets an individual can purchase or
sell for portfolio revision. Securities can be purchased and sold only when
there are changes or fluctuations in the financial
market.
Why Formula Plans ?
Formula plans help an investor to make the best possible use of fluctuations
in the financial market. One can purchase shares
when the prices are less and sell o� when market prices are higher.
7. With the help of Formula plans an investor can divide his funds into
aggressive and defensive portfolio and easily transfer funds
from one portfolio to other.
Aggressive Portfolio
Aggressive Portfolio consists of funds that appreciate quickly and guarantee
maximum returns to the investor.
Defensive Portfolio
Defensive portfolio consists of securities that do not �uctuate much and
remain constant over a period of time.
Formula plans facilitate an investor to transfer funds from aggressive to
defensive portfolio and vice a versa.
3 Different Types of Formula Plans (Numerical Example)
1. Constant-Rupee-Value Plan:
The constant rupee value plan specifes that the rupee value of the stock
portion of the portfolio will remain constant. Thus, as the
value of the stock rises, the investor must automatically sell some of the
shares in order to keep the value of his aggressive
portfolio constant.
If the price of the stock falls, the investor must buy additional stock to keep
the value of aggressive portfolio constant.
2. Constant Ratio Plan:
The constant ratio plan goes one step beyond the constant rupee plan by
establishing a �xed percentage relationship between
the aggressive and defensive components. Under both plans the portfolio is
forced to sell stocks as their prices rise and to buy
8. stocks as their prices fall.
Under the constant ratio plan, however, both the aggressive and defensive
portions remain in constant percentage of the
portfolio’s total value. The problem posed by re- balancing may mean
missing intermediate price movements.
3. Variable Ratio Plan:
Instead of maintaining a constant rupee amount in stocks or a constant ratio
of stocks to bonds, the variable ratio plan user
steadily lowers the aggressive portion of the total portfolio as stock prices
rise, and steadily increase the aggressive portion as
stock prices fall.
Key Differences Between Stocks and Mutual Funds
The points given below are vital, so far as the difference between
stocks and mutual funds is concerned:
The collection of shares, which are owned by an investor signifying
his/her proportion of ownership is called stock. A fund managed by
the investment company that pools money from numerous investors
and invests them in the basket of assets like equity, debt other money
market instrument is called mutual fund.
While stocks are a form of direct investment, mutual funds are an
indirect investment.
Stocks offer ownership stake to the investor in a company. On the
other hand, mutual funds offer fractional ownership of basket of
assets.
9. In the case of stocks, trading is done throughout the day when the
market is open. As against this, trading is done only once in a day, in
mutual funds.
The management and administration of stock are done by the investor
himself. Conversely, the fund manager manages and administers
mutual funds.
The per share price multiplied by the number of shares is equal to the
value of stock held by the investor. On the contrary, the value of the
mutual fund can be measured by calculating NAV, which is the total
value of asset net of expenses.
Mutual Funds are comparatively less risky than stocks, due to the
presence of diversification.
What is 'Net Asset Value - NAV'
Net asset value (NAV) is value per share of a mutual fund or
an exchange-traded fund (ETF) on a specific date or time. With both
security types, the per-share dollar amount of the fund is based on the
total value of all the securities in its portfolio, any liabilities the fund
has and the number of fund shares outstanding.
In the context of mutual funds, NAV per share is computed once per
day based on the closing market prices of the securities in the fund's
portfolio. All of the buy and sell orders for mutual funds are processed
at the NAV of the trade date. However, investors must wait until the
following day to get the trade price. Mutual funds pay out virtually all of
their income and capital gains. As a result, changes in NAV are not
the best gauge of mutual fund performance, which is best measured
by annual total return.
The formula for a mutual fund's NAV calculation is straightforward:
10. NAV = (assets - liabilities) / number of outstanding shares
Net Asset Value Per Share - NAVPS
The net asset value per share (NAVPS), also referred to as the book
value per share, is an expression for net asset value that represents
the value per share of a mutual fund, exchange-traded fund (ETF) or a
closed-end fund. It is calculated by dividing the total net asset value of
the fund or company by the number of shares outstanding.