How can the following attached results be interpreted in today's investment/ finance world? Basically using two approaches, the Markowitz and Resampling technique. Results are: Sharpe Measure Port....

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Answered Same DayDec 20, 2021

Answer To: How can the following attached results be interpreted in today's investment/ finance world?...

David answered on Dec 20 2021
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Portfolio Management:
Portfolio Management is the technique of taking decisions about investment mix and policy, matching investment
s to its objectives, allocation of assets for individuals and institutions and risk balance against performance. It is related to strengths, weakness, opportunities and threats (SWOT Analysis) in the selection of debt vs. equity, domestic vs. international, growth vs. safety and other tradeoffs arising in attempt to maximize return at given level of risk.
There are two forms of portfolio management namely passive and active. Passive management observes market index, commonly known as indexing or index investing. Active management includes single manager, co-managers, or a team of managers who tries to beat the market return by effectively managing fund’s portfolio by investment decisions based on research and decisions on individual holdings.
Sharpe Measure:
Sharpe Measure is the ratio developed by Nobel laureate William F. Sharpe to measure the risk adjusted performance. It can be calculated by dividing the difference of risk free rate & rate of return for a portfolio with standard deviation of portfolio returns.
It evaluates whether the return from portfolio are due to the smart investment decisions or due to the result of excess risk. This method is quite useful and any...
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