The second Homework announcement (FRM Homework 002)
1. Write down your portfolio investment plan?
2. Why you make this portfolio investment plan, explain.
Write down your answer at the bottom and submit:New discussion
Indications to this Homework
What are the main meanings of Portfolio theory ?
The theory that holds that assets should be chosen on the
basis of how they interact with one another rather than how
they perform in isolation. According to this theory, an optimal
combination would secure for the investor the highest possible
return for a given level of risk or the least possible risk for a given
level of return. Although individual investors can use some of the
ideas of portfolio theory in putting together a group of investments,
the theory and the literature relating to it are so complex and
mathematically sophisticated that the theory is applied primarily
by market professionals.
Portfolio theory also called Modern Portfolio Theory.