The Modified Dietz method is a portfolio management technique that is used to calculate the rate of return on a portfolio. The technique was developed by Richard A. Dietz in the early 1970s. The Modified Dietz method is similar to the original Dietz method, but it takes into account the reinvestment of dividends and capital … Read more
The Treynor Index is a measure of the risk-adjusted return on an investment. It is calculated by dividing the excess return of the investment over the risk-free rate by the beta of the investment. The Treynor Index is used to evaluate how well an investment performs in relation to its market risk. A higher Treynor … Read more
. Overlay: A Way to Keep Accounts Separate on the Same Page What does it mean to overlay data? Overlaying data is the process of superimposing one data set over another. This is often done to compare two data sets, or to see if there is a correlation between them. For example, you might overlay … Read more
A style box is a tool used by investment professionals to help categorize investments based on their risk and return characteristics. The style box was first introduced by Morningstar in 1992 and has since been adopted by many other investment research firms. There are nine different categories in a style box, which are broken down … Read more
. Assets Under Management (AUM): Definition and Calculation An asset under management (AUM) is the total market value of all the assets that an investment company or financial institution manages on behalf of its clients. The calculation of AUM is a simple matter of adding up the market value of all the assets in the … Read more
The international portfolio advantages and limitations refer to the benefits and drawbacks of investing in foreign assets. The main advantage of investing in foreign assets is the diversification benefits that it can provide. By investing in a variety of foreign assets, investors can help to mitigate the risk of investing in a single country or … Read more
Risk management in finance is the process of identifying, assessing, and managing risks that may have an impact on the financial performance of a company. It includes identifying and analyzing potential risks, developing and implementing strategies to manage those risks, and monitoring and reviewing the effectiveness of those strategies. There are a number of different … Read more
Portfolio income is defined as any income earned from investments, including dividends, interest, and capital gains. This type of income is often considered to be more stable and less risky than other forms of income, such as wages or salaries. Portfolio income can be generated from a variety of investments, including stocks, bonds, mutual funds, … Read more
The Key to Sound Portfolio Management Strategy is Investment Analysis What are the four steps in the portfolio management process? The portfolio management process generally consists of four steps: 1. Setting investment objectives and constraints – This step involves setting investment objectives and constraints, which will guide the portfolio manager in making investment decisions. 2. … Read more
The Prudent Person Rule is a rule that is used by financial advisors to manage their clients’ portfolios. This rule states that the advisor must act in a way that is in the best interests of the client and must exercise prudence when making decisions about how to invest the client’s money. This rule is … Read more
