FIN 402 - Week 4 - Risk and Return Analysis Paper.DOC

FIN 402 - Week 4 - Risk and Return Analysis Paper

Risk and Return Analysis

University of Phoenix











                        Conduction of return and risk analysis is an important step in management of portfolio and analysis of the return components. There are stocks markets, money markets vehicle and bonds with greater percentage of shares one over the other.  On the basis of the tolerance of the investor’s risk is estimated. There is aggressive risk tolerance to the team and weight age is more to the weighted average security using each of theirs beta. Identification of the high performers is done by this process. In order to have the finalization for the risk and analysis of the return the final risk evaluation is done. Relationship between the macroeconomic variables and also between risk and tolerance is evaluated which is the last topic to be studied.

Asset Allocation

            During the discussion of weights within the portfolio of the other the risk tolerance level of the team is considered. The team of portfolio management makes its choices between the stocks, then bonds and fina
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