O'Reilly logo

Equity Markets and Portfolio Analysis by R. Stafford Johnson

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

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 ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required