High-Quality Portfolio Management Answers

Overview of Option Pricing ModelsInvestors should have a comprehensive knowledge about various variables which are essential for determining the price of an option. There are several methods of option pricing which use parameters like volatility, price of the underlying, risk free rate and time to expiration to arrive at a theoretical fair value of options. The most commonly used option pricing model is the Black-Scholes option pricing model w...

Portfolio Management ModelsProduct portfolio management is powerful decision process that involves constantly updating and revising a variety of new products and expansion projects. In an organization, it is stirred by the availability of various challenges in the market (Foxall, 2014). Available resources and the product cycle stage of the product determine the portfolio management process (Jugend, 2016). In the process, new product...

1. Organisational ContextThe strategic development and planning is a critical factor for the development of the organization and formation of an effective and smart system of operations (Adewole, Odunjo and Misra 2015, 1-5). The implementation of the strategic planning and functional development can be enhanced and further motivated using business management concepts and functions. The smart operations in the business organizations are conclud...

Situational Context and EvaluationProject portfolio management helps organizations both large and small to break down its project’s resources, its budgets, and targets into manageable elements. This paper will look at the strategies, processes, and deployment of an efficient and easily adaptable project management portfolio in Coca-Cola Company.  Portfolio management helps in improving the multi-level projects of Coca-Cola Company, ...

Question 1 a) Benchmark index is a group of stocks/securities which are used as benchmarks to compare the performance of stocks. These are also called the market index. The benchmark index for certain countries is given below: Country Benchmark Index Australia ASX 200 USA Dow Jones Hong Kong Hang Seng Japan Nikkei Index England FTSE 100 China S...

Reflective Portfolio and Its Purpose The room division management is an integral part in the hotel industry. As it is a known fact that hotel industry is a very big industry being full of risks, there are no doubts that this industry has many responsibilities towards its customers. The customers are the main responsibilities for the hotel managers and the different sections of the operations management. Hotel room division management is also s...

Question 11.a) A portfolio of strong diversification can be attained when the investment is done in less than positively correlated investments. This is due to the fact that when the asset is added to the portfolio it will create opportunities where the change in one variable will bring change in another variable. Thereby, the total risk will be reduced and an opportunity of enhanced return will occur. Both the assets and the portfol...

Application of MethodsReturn on any investment can be referred as the reward, provided to the investors, for bearing the risk of the investment. Amongst all the investment alternatives, stock prices are the most volatile in nature and therefore, the risk on investment in stocks is higher in comparison to other investment alternatives. On the other hand, due to the higher risk, the investors use to get higher returns on the stock investments. H...

Yield to Maturity (YTM)1. a) Yield to maturity is the rate that is used to discount the future cash flows associated with the bond. Typically it is the return earned by the bondholder for purchasing and holding the bonds till their maturity. This rate equates the present value of the cash flows related to bond with their current market price. YTM is also referred as internal rate of return or the market interest rate (Stack Exchange, 2018). Par...

Task 1Westpac was established in 1817 and there are more than 35,200 employees who are assisting more than 12 Million customers in Australia, New Zealand and also in the Asia Pacific Region (Westpac, 2018). In this report, the discussion will be made on the Westpac Company. Strategies deployed by Westpac Company  It is important to consider effective strategies by the companies as it can help to enhance the growth in the competit...

Learning Objectives AchievedAnswer: Vitragroup is one of the world's largest manufacturer of commercial facade panels. The company manufactures a wide range of facade products, in addition to being the leading producer of coating applicators of wall cladding panels and products with super high performance and flexibility. Our inspiration comes from our vision to be the world's leading manufacturer of quality facade and cladding products; throu...

The concept of Social ResponsibilityThe term social responsibility refers to the social activities done by the company as a part of their social corporate responsibility and the same benefits the society at a larger section. The social responsibility activities of the company involve investing some portion of the company’s profit into the social activities and overall development of the society. The social responsibility is an importan...

Overview of Exchange Traded Funds (ETFs)Vanguard MSCI Australian small companies index is an exchange traded fund that intends to match the return in terms of capital appreciation and income of the MSCI small cap index Australian shares. The fund is a small capitalisation index that generally involves smaller companies on the equity market of Australia that target coverage of around 14% of free float of market capitalisation of share market th...

Literature Review 1). Literature Review Stock selection and evaluation is commonly carried using various methods of fundamental and technical analysis. This consists of analysis of past financial position of a company and studying movements of price fluctuations of its stock. On the other hand, efficient market hypothesis and behavioural finance add another dimension to stock selection and their performance evaluation According to Efficien...

Understanding the investment processA diversified portfolio can assist in protecting wealth from ups and downs of the market. There are usually four major types of investment also known as asset classes, having own risks and benefits which are; Cash, fixed rate, shares and property. An investor can directly invest in these assets or might prefer a managed fund that can provide various investments. Defensive investments: These investments are ...

Feasibility analysisSystem is composed of different procedures that are brought together to complete a particular designated task within a specified period of time while information system is just a software used to give a particular data to it’s users. Information system in most organizations are managing and processing data as soon as the users request for the data. It can as well be used for planning long term activities in an organiz...

Investment Policy StatementThe investment portfolio is a crucial aspect in finance studies as the matter is considerate of lots of success-critical factors for the business (Chow, Kose and Li, 2016). The finance professionals develop client’s portfolio based on these factors which primarily define the risk landscape a well as return expectation of the clients (Bisetti et al, 2017). The given report delves into the case study where a...

Performance evaluationDiscuss about teh Investment and Portfolio Management for Sharpe Ratio. The report mainly focuses on the various portfolios of US market and evaluates that which portfolios are the best in context with the investment. In the report, top 8 mutual funds of the US market has been evaluated on the basis of the average return, standard deviation, beta of the portfolio, average performance of the portfolio, Sharpe ra...

Argument for the usage of professional practice portfolioDiscuss about the Advancement of Computing in Education. The professional practice portfolio is a way to document the competency of the nursing professional and a complete illustration of work experience that has been carefully selected using the materials or documents of the nurse (McMullan et al., 2012). Further, it also provides the nursing professional with an opportunity to...

1. Portfolio, Integrated Organisation Perspectives, and Competitiveness1.Critically evaluate the Merits and Demerits, of adopting the ‘Portfolio Organisation Perspective’ or the ‘Integrated Organisation Perspective’ in the Management of Tata’s range of Products . 2.In your Opinion does Tata have the Mix of resources and capabilities to bring the ‘digital and mobile’ technologies together in order to...

1. Internal Rate of Return and Capital Budgeting1.How their decision making could be related to capital budgeting techniques such as, Internal Rate of Return relation to Capital Budgeting Techniques? 1. Explain and identify similarities and differences between Capital Asset Pricing Model and Capital Market Line? 1. Capital Budgeting is the process by which a Business makes decision on whether to take up a project or not. This involve...

Sensitivity and Scenario Analysis in Capital BudgetingDiscuss about the Empirical and Theoretical Analysis. Capital budgeting is a technique through which the business takes decision related to selection of the project to be carried out by it. It takes into consideration the investment made by the company in a particular project and the returns that will be generated from the project. Sensitivity analysis helps in providing additional...

Factors determining the expected return of a portfolioDescribe about the Financial Management for Portfolio Management Finance. Portfolio management is an art where finance professionals come up with the right mix of investments so as to increase the returns for the investors. They may use various financial models so as to come up with the right proportions of the investments. However, their personal insights from their vast experiences a...

Purchasing Management and Supplier Selection CriteriaQuestion:Write a report about the purchasing management. The purpose of this report is to show the various aspects of the purchasing management with focus on the supplier selection criteria and an extended emphasis on the impact of supply chain of a company with the use of Internet communication Technology (ICT). For the purpose of supplier selection it has been defined whether single sou...

Introduction to Product Life Cycle TheoryQuestion:Discuss the product portfolio management theories and product life cycle by quoting examples from a company with wide range of products.  Product Life Cycle Theory is the cycle through which the product undergoes from the introduction to the declination stage. Proper analysis of plc would enable the company to initiate the health for the product and in relation with the market it serves...