TAILIEUCHUNG - Lecture Investment analysis & portfolio management - Chapter 24

After studying this chapter you will be able to understand: Portfolio returns, portfolio proportion, mean or average return, variance and covariance, sample covariance, expectations, expected returns, population variance, population covariance. | Investment Analysis and Portfolio management Lecture: 24 Course Code: MBF702 Outline RECAP Portfolio returns Portfolio proportion Mean or Average return Variance and covariance Sample covariance Expectations Expected returns Population variance Population covariance Portfolio Return This calculation can be easily extended to include dividends. If the dividend payment per share from stock i is denoted by di, the formula for the calculation of the return from a portfolio becomes Portfolio Return Example Consider the portfolio of three stocks described in the table. Portfolio Return This formula for the return can also be extended to incorporate short-selling of stock. Remember that short-selling refers to the act of selling an asset you do not own by borrowing the asset from another investor. In the notation used here, short-selling means you are indebted to the investor from whom the stock has been borrowed so that you effectively hold a negative quantity of the stock. For example,

• Tài chính doanh nghiệp
• Investment analysis
• Portfolio management
• Investment management
• Investment theory
• Investment environment
• Investment analysis
• Investment companies
• Time value of money
• Characteristics of investment
• Investment portfolio management
• Investment analysis & portfolio management
• Investment background
• Developments in investment theory
• Management of common stocks