Portfolio Analysis - 5153 Words

chapter two PORTFOLIO ANALYSIS INTRODUCTION Organizations market a mix of products or services or both. These constitute the offering that is made through the strategic window. Central to the success or failure of a business is the health of its product (or service) mix. A starting point is the product life cycle concept. This is a useful conceptual framework within which to study how firms can vary their marketing strategies—though of course as we shall see in later chapters they do have to take other factors into account. There seems to be little doubt, however, that at different stages in the product life cycle certain marketing strategies seem to be more appropriate than others. The life cycle concept also points to the different†¦show more content†¦One problem that has been found in trying to make use of the product life cycle concept as a management tool is that many products do not appear to perform in the market place as it suggests. They seem to bypass some stages while getting stuck at o ther stages. Moreover, they may even come into vogue again after a period of going out of fashion. These observations have brought about criticisms of the product life cycle as a useful planning tool. EXHIBIT 2.1 SWANSEA ENGINEERING—DIFFICULTIES IN USING THE PRODUCT LIFE CYCLE CONCEPT Swansea Engineering makes wire for industrial uses. Applications range from wire for cables to carry high voltage electricity to wire for winding on small electric motors for incorporation in both industrial and domestic products. The firm has tried to use the life cycle concept to explain generic sales in the market and sales of its own products. Difficulties encountered include the defining of product markets and the separation from natural growth and decline in the market and the effects of recession. Indeed in recent years it has proved extremely difficult to assess exactly where many products and markets are in relationship to their anticipated life cycles. Ironing out the fluctuations caused by economic recessions and mini-booms causes one of the major problems. InShow MoreRelatedPortfolio Performance and Attribution Analysis2829 Words   |  12 PagesPortfolio Performance Evaluation an d Attribution Analysis Date of Submission 22nd June, 2011 Portfolio Performance Evaluation and Attribution Analysis Submitted to: Mahmood Osman Imam, Ph.D. Professor Department of Finance University of Dhaka Submitted by: Sakib Ahmed Chowdhury B.B.A. 13th Batch Section: A, ID: 13-161 Group # 9 Department of Finance University of Dhaka 22nd June, 2011 Dr. Mahmood Osman Imam Professor Department of Finance Faculty of Business Studies Read MoreKey Issues Relative to Portfolio Analysis and Investment1899 Words   |  8 PagesThis essay is concerned with understanding the key issues relative to portfolio analysis and investment. The scope of this essay will be limited to the U. S. Stock markets only. This essay will be built upon extant portfolio theory and will discuss different types of risks that investors might face and how they go about managing such risks. Under consideration will be topics such as efficient frontier and optimal portfolios as well as their relevance to investment theory, under the assumptionRead MoreSecurity Analysis Portfolio Management7511 Words   |  31 PagesPROJECT ON SECURITY ANALYSIS PORTFOLIO MANAGEMENT A STUDY ON SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT INTRODUCTION: Traditional  Ã‚  Ã‚  Ã‚  security  Ã‚  Ã‚  Ã‚  analysis  Ã‚  Ã‚  emphasis  Ã‚  Ã‚  Ã‚  the  Ã‚  Ã‚  projection  Ã‚  Ã‚  of  Ã‚  Ã‚  prices  Ã‚  Ã‚  and  Ã‚  Ã‚  dividends  Ã‚  Ã‚  accordingly the potential price the firms common stock and the future  Ã‚  Ã‚  dividend seem were  Ã‚  Ã‚  to  Ã‚  Ã‚  be  Ã‚  Ã‚  forecast  Ã‚  Ã‚  and  Ã‚  Ã‚  the discount allowed 10%. The traditional views  Ã‚  Ã‚  Ã‚  are  Ã‚  Ã‚  on  Ã‚  Ã‚  the  Ã‚  Ã‚  intensive  Ã‚  Ã‚  and current market price  Ã‚  Ã‚  of  Ã‚  Ã‚  Ã‚  security if the current market priceRead MoreEssay on Risk and Return Analysis for Efficient Portfolio Selection 892 Words   |  4 PagesRISK AND RETURN ANALYSIS FOR EFFICIENT PORTFOLIO SELECTION Keywords: Efficient allocation, Risk and return, Return on investment, Expectations, Investment 1. INTRODUCTION All investment decisions necessitate consideration of the required return, the expected return, and the estimated risk. Markowitz (1952; 77) states the process of selecting a portfolio may be divided into two stages. 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My revised papers are the evidence, and the analysis I make is how these papers show my growth, improvement, and now capable writing abilities to meet the outcomes of English 131. In the very creation of this portfolio, in addition to the revised essays, I accomplish multiple global objectives for this class. These objectives include writing a comple x claim, writingRead MoreInvestment Portfolio Analysis1716 Words   |  7 PagesB6201 – Investments/portfolio theory | Investment Portfolio Analysis | Course Project Task 6 | | Crystal Watkins | 10/17/2012 | This paper will Identify and explain the major factors driving the market during this week. It will also identify and explain causes of changes in the market and the index. As well as developed investment objectives and defined risk tolerance levels. I will also include a snap shot of my investments and an explanation of why I choose those particular companiesRead MoreEssay on Portfolio Analysis1506 Words   |  7 Pagestopics. 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Although it provides a good sense of risk one is undertaking, it shouldn’t be an alternative method to risk adjusted value and or other probabilistic approaches. In the following lines, we first give a general description of the VaR and the story