Portfolio Diversification Book

Portfolio Diversification

  • Author : Francois-Serge Lhabitant
  • Publisher : Elsevier
  • Release Date : 2017-09-26
  • Genre: Mathematics
  • Pages : 274
  • ISBN 10 : 9780081017869

Portfolio Diversification Excerpt :

Portfolio Diversification provides an update on the practice of combining several risky investments in a portfolio with the goal of reducing the portfolio's overall risk. In this book, readers will find a comprehensive introduction and analysis of various dimensions of portfolio diversification (assets, maturities, industries, countries, etc.), along with time diversification strategies (long term vs. short term diversification) and diversification using other risk measures than variance. Several tools to quantify and implement optimal diversification are discussed and illustrated. Focuses on portfolio diversification across all its dimensions Includes recent empirical material that was created and developed specifically for this book Provides several tools to quantify and implement optimal diversification

Portfolio Selection Book

Portfolio Selection

  • Author : Harry Markowitz
  • Publisher : Yale University Press
  • Release Date : 2008-10-01
  • Genre: Business & Economics
  • Pages : 351
  • ISBN 10 : 9780300013726

Portfolio Selection Excerpt :

Embracing finance, economics, operations research, and computers, this book applies modern techniques of analysis and computation to find combinations of securities that best meet the needs of private or institutional investors.

Asymmetric Dependence in Finance Book

Asymmetric Dependence in Finance

  • Author : Jamie Alcock
  • Publisher : John Wiley & Sons
  • Release Date : 2018-03-05
  • Genre: Business & Economics
  • Pages : 312
  • ISBN 10 : 9781119289012

Asymmetric Dependence in Finance Excerpt :

"Asymmetric Dependence (hereafter, AD) is usually thought of as a cross-sectional phenomenon. Andrew Patton describes AD as "stock returns appear to be more highly correlated during market downturns than during market upturns." (Patton, 2004) Thus at a point in time when the market return is increasing we might expect to find the correlation between any two stocks to be, on average, lower than the correlation between those same two stocks when the market return is negative. However the term can also have a time series interpretation. Thus it may be that the impact of the current US market on the future UK market may be quantitatively different from the impact of the current UK market on the future US market. This is also a notion of AD that occurs through time. Whilst most of this book addresses the former notion of AD, time-series AD is explored in Chapters Four and Seven"--

In Pursuit of the Perfect Portfolio Book

In Pursuit of the Perfect Portfolio

  • Author : Andrew W. Lo
  • Publisher : Princeton University Press
  • Release Date : 2021-08-17
  • Genre: Business & Economics
  • Pages : 416
  • ISBN 10 : 9780691222684

In Pursuit of the Perfect Portfolio Excerpt :

How the greatest thinkers in finance changed the field and how their wisdom can help investors today Is there an ideal portfolio of investment assets, one that perfectly balances risk and reward? In Pursuit of the Perfect Portfolio examines this question by profiling and interviewing ten of the most prominent figures in the finance world—Jack Bogle, Charley Ellis, Gene Fama, Marty Leibowitz, Harry Markowitz, Bob Merton, Myron Scholes, Bill Sharpe, Bob Shiller, and Jeremy Siegel. We learn about the personal and intellectual journeys of these luminaries—which include six Nobel Laureates and a trailblazer in mutual funds—and their most innovative contributions. In the process, we come to understand how the science of modern investing came to be. Each of these finance greats discusses their idea of a perfect portfolio, offering invaluable insights to today’s investors. Inspiring such monikers as the Bond Guru, Wall Street’s Wisest Man, and the Wizard of Wharton, these pioneers of investment management provide candid perspectives, both expected and surprising, on a vast array of investment topics—effective diversification, passive versus active investment, security selection and market timing, foreign versus domestic investments, derivative securities, nontraditional assets, irrational investing, and so much more. While the perfect portfolio is ultimately a moving target based on individual age and stage in life, market conditions, and short- and long-term goals, the fundamental principles for success remain constant. Aimed at novice and professional investors alike, In Pursuit of the Perfect Portfolio is a compendium of financial wisdom that no market enthusiast will want to be without.

Beyond Diversification  What Every Investor Needs to Know About Asset Allocation Book

Beyond Diversification What Every Investor Needs to Know About Asset Allocation

  • Author : Sebastien Page
  • Publisher : McGraw Hill Professional
  • Release Date : 2020-11-10
  • Genre: Business & Economics
  • Pages : 256
  • ISBN 10 : 9781260474886

Beyond Diversification What Every Investor Needs to Know About Asset Allocation Excerpt :

Generate solid, long-term profits with a portfolio allocated for your investing needs Asset allocation is the key to investing performance. Unfortunately, no single approach works perfectly—developing the right balance requires a clear-eyed look at the many models available to you, various investing methodologies, and your or your client’s level of risk tolerance. And that’s where this important guide comes in. Written by a leading allocation expert from T. Rowe Price, Beyond Diversification provides the knowledge, insights, and approaches you need to make the best allocation decisions for your goals. This deep dive into the how’s and why’s of asset allocation is organized by the three decisive components of a successfully allocated portfolio: Return Forecasting discusses the desired return investors seek. Risk Forecasting covers the level of risk investors are prepared to assume to achieve that return. Portfolio Construction calibrates the stock-bond mix that balances the risks and returns. With examples from T. Rowe Price’s asset allocation team showing you how the process works in the real world, Beyond Diversification provides everything you need to find the asset combination that will deliver the results you seek. You’ll learn how to choose the right tradeoffs, build the most effective asset allocation combination for your needs, and dramatically increase your odds of success for the long run.

Windfall Profit in Portfolio Diversification   An Empirical Analysis of the Potential Benefits of Renewable Energy Investments Book

Windfall Profit in Portfolio Diversification An Empirical Analysis of the Potential Benefits of Renewable Energy Investments

  • Author : Frederik Bruns
  • Publisher : Diplomica Verlag
  • Release Date : 2013
  • Genre: Business & Economics
  • Pages : 112
  • ISBN 10 : 9783842887992

Windfall Profit in Portfolio Diversification An Empirical Analysis of the Potential Benefits of Renewable Energy Investments Excerpt :

Modern Portfolio Theory is a theory which was introduced by Markowitz, and which suggests the building of a portfolio with assets that have low or, in the best case, negative correlation. In times of financial crises, however, the positive diversification effect of a portfolio can fail when Traditional Assets are highly correlated. Therefore, many investors search for Alternative Asset classes, such as Renewable Energies, that tend to perform independently from capital market performance. 'Windfall Profit in Portfolio Diversification?' discusses the potential role of Renewable Energy investments in an institutional investor’s portfolio by applying the main concepts from Modern Portfolio Theory. Thereby, the empirical analysis uses a unique data set from one of the largest institutional investors in the field of Renewable Energies, including several wind and solar parks. The study received the Science Award 2012 of the German Alternative Investments Association ('Bundesverband Alternative Investments e.V.').

Portfolio Diversification  Leverage  and Financial Contagion Book

Portfolio Diversification Leverage and Financial Contagion

  • Author : Mr.Garry J. Schinasi
  • Publisher : International Monetary Fund
  • Release Date : 1999-10-01
  • Genre: Business & Economics
  • Pages : 38
  • ISBN 10 : 9781451855791

Portfolio Diversification Leverage and Financial Contagion Excerpt :

Models of “contagion” rely on market imperfections to explain why adverse shocks in one asset market might be associated with asset sales in many unrelated markets. This paper demonstrates that contagion can be explained with basic portfolio theory without recourse to market imperfections. It also demonstrates that “Value-at-Risk” portfolio management rules do not have significantly different consequences for portfolio rebalancing and contagion than other rules. The paper’s main conclusion is that portfolio diversification and leverage may be sufficient to explain why investors would find it optimal to sell many higher-risk assets when a shock to one asset occurs.

Financial Globalization  Portfolio Diversification  and the Pattern of International Trade Book

Financial Globalization Portfolio Diversification and the Pattern of International Trade

  • Author : Miklós Koren
  • Publisher : International Monetary Fund
  • Release Date : 2003-12-01
  • Genre: Business & Economics
  • Pages : 47
  • ISBN 10 : 9781451875614

Financial Globalization Portfolio Diversification and the Pattern of International Trade Excerpt :

The paper provides a general-equilibrium model where incomplete international financial markets lead to insufficient industrial specialization and low international trade. As international portfolio diversification is limited and productivity is uncertain, investors wish to maintain a diversified industrial structure rather than specializing according to their comparative advantage. Financial globalization then induces more specialization and more trade. The present framework yields explicit closed-form solutions for the volume and the structure of trade. Empirical results support the implications of the theory. Trade in financially open countries is (i) higher, (ii) more dependent on productivity differences, and (iii) less sensitive to industry risks.

Diversification and Portfolio Management of Mutual Funds Book

Diversification and Portfolio Management of Mutual Funds

  • Author : G. Gregoriou
  • Publisher : Springer
  • Release Date : 2006-11-17
  • Genre: Business & Economics
  • Pages : 419
  • ISBN 10 : 9780230626508

Diversification and Portfolio Management of Mutual Funds Excerpt :

This book addresses the importance of diversification for reducing volatility of investment portfolios. It shows how to improve investment efficiency, and explains how international diversification reduces overall risk while enhancing performance. This book is a crucial tool for any investor looking to improve the profit gain from their investment.

Wiser Investing Book

Wiser Investing

  • Author : Benjamin C. Halliburton
  • Publisher : Forbesbooks
  • Release Date : 2019-02-14
  • Genre: Business & Economics
  • Pages : 184
  • ISBN 10 : 1946633437

Wiser Investing Excerpt :

Diversification Works Many investors share a short-term outlook, narrowing their focus so much that they miss the long game being strategically implemented by the uber-wealthy and institutions. While you've not been doing anything wrong by using just stocks and bonds, what if you could now obtain wiser investment strategies? Don't put all your eggs in one basket when building your portfolio. In Wiser Investing: Diversify Your Portfolio Beyond Stocks and Bonds, Benjamin C. Halliburton will teach you strategies that can help you build and protect your wealth, produce extra income, and help you secure your future. You'll learn that even though investors may be playing a great game with only stocks and bonds, their hand is only utilizing a portion of the available cards in the investment deck. No one wants to be worrying about their investments and wondering if they will have enough capital and income to take care of themselves and their families. This book explores a way to potentially improve your portfolio and become a wiser investor.

Active Alpha Book

Active Alpha

  • Author : Alan H. Dorsey
  • Publisher : John Wiley & Sons
  • Release Date : 2011-07-12
  • Genre: Business & Economics
  • Pages : 400
  • ISBN 10 : 9781118161142

Active Alpha Excerpt :

Praise for Active Alpha "Active alpha is the quest for every sophisticated investor. Thisbook covers all of the key alpha sources currently mined by activemanagers, reduces the complexity of the subject, and helps theinvestor get started in the right direction." -Mark Anson, Chief Executive Officer, Hermes Pensions ManagementLtd. "Long-held traditional methods for investing large portfolios aregiving way to new processes that are designed to improveproductivity and diversification. These changes find their locus inthe sometimes overly mysterious world of absolute returnstrategies. In this book, Alan Dorsey demystifies that new worldand provides a guiding pathway into the future of professionalportfolio management. This is an important read for any investorwho plans to succeed going forward." -Britt Harris, Chief Investment Officer, Teacher Retirement Systemof Texas "With great lucidity, Alan Dorsey's book, Active Alpha, fills animportant void by identifying the relevant institutional featuresof this complex subject and by providing a unifying analyticframework for understanding and constructing portfolios ofalternative assets. For anyone investing in the alternative class,from the new student to the experienced practitioner, Active Alphais a necessary read. I am recommending it to everyone I know withsuch an interest, and it is destined to become a much thumbedreference on my shelf." -Steve Ross, Franco Modigliani Professor of Financial Economics,Sloan School, MIT

Managing Diversified Portfolios Book

Managing Diversified Portfolios

  • Author : Daniel O. Klier
  • Publisher : Springer Science & Business Media
  • Release Date : 2009-05-28
  • Genre: Business & Economics
  • Pages : 295
  • ISBN 10 : 379082173X

Managing Diversified Portfolios Excerpt :

There has been a long tradition of research on the relation between diversification and performance of public corporations in the strategy and finance fields. As for private equity portfolios, research on this matter is rather scarce. From a theoretical as well as from a practical perspective, however, it is interesting to know more about the relation between private equity portfolio diversification and performance, how private equity firms manage their portfolios, and what public companies can learn from private equity firms. These are the research questions which are addressed in Daniel Klier’s research. In order to answer these questions, the author uses a two-tier research design. As a first step, he compares the diversification-performance link of public corporations and private equity firms. With respect to the private equity sample and the ope- tionalization of the relevant variables, the study is highly innovative in terms of generating the PE sample from databases like Preqin and Dealogic, constructing a diversification measure from transaction data, and developing comparable perfo- ance measures for private equity firms as well as traditional multi-business firms. As the second step, which is exploratory in nature, the author explores m- agement models of PE firms. The sample of 20 US and Europe-based private equity firms is unique and of high quality, because the author succeeded in getting in-depth interviews with top decision makers of PE firms. The exploratory study extracts three clusters of management models that PE firms are using, and their relation to performance.

Fund of Funds Investing Book

Fund of Funds Investing

  • Author : Daniel A. Strachman
  • Publisher : John Wiley and Sons
  • Release Date : 2009-11-13
  • Genre: Business & Economics
  • Pages : 212
  • ISBN 10 : 0470564407

Fund of Funds Investing Excerpt :

Valuable guidance on fund of funds investing While capital markets have become more complex, investors are still looking to increase portfolio performance without increasing risk. Fund of funds investing is one such avenue to pursue. This practical guide provides you with the tools needed to understand and evaluate your investments in this often opaque area of finance. In Fund of Funds Investing, hedge fund expert Daniel Strachman and fund of funds manager Richard Bookbinder offer valuable insights into this world through an industry overview and review of essential issues including due diligence, risk and portfolio management, and multi-strategy funds. Outlines strategies that will help you invest directly in a wide range of hedge funds Other titles by Strachman: The Fundamentals of Hedge Fund Management, Essential Stock Picking Strategies, The Long and Short of Hedge Funds, Julian Robertson, and Getting Started in Hedge Funds, Second Edition Based on extensive interviews by the authors as well as their experiences in this field Funds of Funds Investing is an important guide to one of the most misunderstood areas of modern finance.

7Twelve Book


  • Author : Craig L. Israelsen
  • Publisher : John Wiley & Sons
  • Release Date : 2010-07-02
  • Genre: Business & Economics
  • Pages : 204
  • ISBN 10 : 0470649879

7Twelve Excerpt :

A proven way to put together a portfolio that enhances performance and reduces risk Professor Craig Israelsen of Brigham Young University is an important voice in the area of asset allocation. The reason? He keeps things simple. Now, in 7Twelve, he shows you how to do the same, and demonstrates how his approach to investing can help you grow your money as well as protect it. 7Twelve outlines a multi-asset balanced portfolio that is a logical starting point when assembling a portfolio-either as the blueprint for the entire portfolio or as a significant building block. Page by page, he will show you how to create a balanced portfolio utilizing multiple asset classes to enhance performance and reduce risk. Discusses how the 7Twelve portfolio includes seven core asset classes and utilizes twelve specific mutual funds or exchange traded funds Details the tax efficiency of this specific investment approach Shows you how to use the 7Twelve portfolio as a pre-retirement accumulation portfolio or a post-retirement distribution portfolio If you want to build a well-balanced, multi-asset portfolio, 7Twelve is the book for you.

Investment Management Book

Investment Management

  • Author : Robert L. Hagin
  • Publisher : John Wiley & Sons
  • Release Date : 2004-02-01
  • Genre: Business & Economics
  • Pages : 336
  • ISBN 10 : 9780471483816

Investment Management Excerpt :

A new look at the important issue of investment management in the 21st century Written for professional and private investors-as well as fiduciaries who rely on investment professionals-this book presents the content of an advanced investment-management course in an easy-to-read, question-and-answer format. Robert L. Hagin (Haverford, PA) is a 30-year investment management veteran who recently retired as Executive Director for Morgan Stanley Investment Management.