Portfolio analysis in practice

Many of the criticisms of portfolio analysis are based on misunderstandings about how it should be used. The aim of this chapter is twofold, first, by practical demonstration to show how portfolio analysis can be applied and used, and second, to provide scoring rules which can be adapted for use in real situations. The chapter explores the wrong strategic indications that can arise when the market is incorrectly defined.

The purpose of this chapter is to illustrate the application and use of two particular methods of portfolio analysis. The first is derived from the directional policy matrix. The second is the risk matrix. Both were described in outline in the previous chapter. In order to achieve this ...

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