CHAPTER 7 Portfolio Evaluation
Introduction
In the last chapter, we examined how to measure the return and risk of stocks. In an efficient market, investors, however, either individually or through an investment fund, can attain better return-risk opportunities by investing in a portfolio. In this chapter, we analyze portfolios, with the emphasis being on stock portfolios.
Portfolio analysis consists of the evaluation and selection of the financial assets that makeup the portfolio. As with individual security evaluation, stock portfolio evaluation entails measuring the characteristics of the portfolio, with the most important properties being the portfolio expected rate of return and risk. Portfolio selection, in turn, involves finding what ...
Get Equity Markets and Portfolio Analysis now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
