1 / 2

Portfolio Management

Portfolio Management. 7. How to calculate Return of a Portfolio (rp) and Risk of a Portfolio ( σ p). rp = Weighted Average Return of Individual Asset

silas-bradshaw
Télécharger la présentation

Portfolio Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Portfolio Management

  2. 7. How to calculate Return of a Portfolio (rp) and Risk of a Portfolio (σp) rp = Weighted Average Return of Individual Asset The risk of a Portfolio is always lower than weighted average risk of Individual Asses except where correlation coefficient is equal to one. As per Markowitz, the risk (σp2) of a portfolio consisting of n assets is given by : Σ2p = ∑i∑j [ xi × xj × σi × σj × rij ] SD Correlation Coefficient Weight www.Safeecollege.com

More Related