The topic is Portfolio Management in Capital Markets and Investments. Do some research on the topic, and, to the extent that is possible and relevant, bring in concepts asConventional Approaches,...

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The topic is Portfolio Management in Capital Markets and Investments. Do some research on the topic, and, to the extent that is possible and relevant, bring in concepts asConventional Approaches, Market Timing, Style Analysis, and Performance Attribution Procedures. Be concise and effective in your writing! Use references, reference everything you use using APA style.


Answered Same DayOct 23, 2021

Answer To: The topic is Portfolio Management in Capital Markets and Investments. Do some research on the topic,...

Preeta answered on Oct 29 2021
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PORTFOLIO MANAGEMENT IN CAPITAL MARKETS AND INVESTMENTS
    Capital market is the one in which long term debts and equities are bought and sold (Stiglitz & Ocampo, 2008). There are two types of cap
ital markets, primary and secondary markets. In primary market new securities are traded where as in secondary market old securities are traded. Investors make investment in the capital market. Portfolio management is the policy of choosing the right investments mix so that the risk and return of the investor is well balanced as per his requirements (Blichfeldt & Eskerod, 2008). Portfolio management in the capital market is choosing the right mix of equity and debt on which the investor will make the investments.
Approaches:
    There are two approaches of portfolio management. The first approach is the traditional or conventional approach. Under this approach two main decisions are taken as to what are the main objectives of the portfolio and then what securities are to be actually included in that portfolio (Baitinger & Papenbrock, 2016). The constraints of the investor are also considered along with properly assessing the risk and returns. In the end diversification is to be maintained in the securities chosen so that financial risk is balanced.
    The next approach is the modern approach. Harry Markowitz first introduced the modern approach and then different scholars followed his footprint. He proposed that the overall risk and reward of the whole portfolio is to be considered rather than just checking the risk and reward of the individual securities in the portfolio (Marston, 2011). Volatility and expected return can be used as risk and reward of portfolios.
Strategies:
    Several investment strategies can be adopted by an investor while trading in capital market. Market timing is an investment strategy where predictions are being made regarding the movement of price of a particular stock and accordingly buying or...
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