Factors which affecting portfolio returns

Reference no: EM1333370

As a manager of a large, broadly diversified portfolio of stocks and bonds you realized that changes in certain microeconomic variables may directly affect the performance of your portfolio. you are considering unsing and Arbitrage pricing theory (APT) approach to strategic portfolio planning and want to analyze the possible impact of the following four factors: industrial production, inflation, risk premia or quality spreads, and yield curve shifts. Indicate how each of these four factors influence s the cash flows and/or the discount rates in the traditional discounted cash flow model. Explain how unanticipated changes in aech of these four factors could affect portfolio returns.

Reference no: EM1333370

Questions Cloud

Maintaining an annotated bibliography : Discuss briefly the advantages and disadvantages of maintaining an annotated bibliography of research data.

Alternative to achieve net income objective : Determine which alternative Almo should select to achieve its net income objective. Show your calculations.

Civil rights movement : How the civil rights movement has contributed to anti-discrimination efforts and the establishment of hate crime legislation and policy.

Note down a code to add two rows of data to the table : Write down a code to add two rows of data to the table that was created using the command above. Ensure the default option on the LAST_DATE column is used in the second row added. Also, issue a command to permanently save the data to the table.

Factors which affecting portfolio returns : As a manager of a large, broadly diversified portfolio of stocks and bonds you realized that changes in certain microeconomic variables might directly affect the performance of your portfolio.

Review of the literature : During your review of the literature, you find that many others have studied your topic, will this tend to bolster your confidence that your topic is worth studying?

Triangular arbitrage profit : Suppose you're a trader with Deutsche Bank. From the quote screen on your computer terminal, you notice that Dresdner Bank is quoting ?0.7627/$1.00 and Credit Suisse is offering SF1.1806/$1.00.

Computing monthly breakeven sales : Determine the monthly breakeven sales in dollars before adding nachos.

Evaluating internal resources and capabilities : Evaluating internal resources and capabilities and then searching for industries in which they can be exploited?

User Account

All Pages