Finance Portfolio Management

This document discusses finance portfolio management, specifically drawing conclusions from sales and customer trends, trend of new customers and sales, average customer spend, CEO's happiness and follow-up questions. It includes graphs and analysis of the data. The bibliography lists relevant sources.

Running head: FINANCE PORTFOLIO MANAGEMENT
Finance Portfolio Management
Name of the Student:
Name of the University:
Authors Note:

FINANCE PORTFOLIO MANAGEMENT
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Table of Contents
Drawing the conclusion from the data:......................................................................................2
1. Indicating how the total customers and sales trending:.........................................................2
2. Indicating the trend of new customers and sales trending:....................................................3
3. Indicating the average customer spend in a month:...............................................................4
4. Indicating whether the CEO should be happy about the data:...............................................4
5. Indicating whether the CEO shall follow-up questions about the data:.................................5
Bibliography:..............................................................................................................................6

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Drawing the conclusion from the data:
1. Indicating how the total customers and sales trending:
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2014 2015 2016
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Sales and Customer Trends
Total sales Total customers
The trend of total customer and total sales has been adequate for past three years,
which can be seen in the above graph. The trend line portrays that the sales was relevantly
higher in majority of the months. However, after July of 2016 the trend of sales declined,
while the number of customers continued to increase. Thus, it could be identified that both
the sales trend of the organisation is relevantly in an uptrend.

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2. Indicating the trend of new customers and sales trending:
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2014 2015 2016
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Trend of new customers and sales trending
Total sales New customers
The graph indicates about the trend link of new customer and total sales that has been
generated by the organisation during the three fiscal years. The graph has indicated that new
customers of the organisation has been fluctuations over the period of three years, while the
sales remained in an uptrend. The limit of the new customers that is witnessed during the
three years is at the levels of 12,800, where the ceiling has been touched twice during the end
of 2015 and in 2016. Therefore, it could be assumed that at the end of the year the
organisation is able to accumulate high level of customers in comparison to the start of the
year.

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3. Indicating the average customer spend in a month:
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2014 2015 2016
-
5.00
10.00
15.00
20.00
25.00
30.00
35.00
Average customer spend in a month
The above graph indicates that the average customer spending in a month has been
declining over the period. Therefore, from the evaluation, it can be detected that the average
spending of the customer has been declining, which directly indicates about its pricing
structure. Therefore, from the data it can be detected that the cost per product has been
declining over the period of three years.
4. Indicating whether the CEO should be happy about the data:
The data indicates about he rising sales that has been achieved by the organisation
over the period of three years. However, there are certain concerns regarding the average
spending that has been conducted by the customers over the fiscal years. Therefore, the CEO
needs to be concerned regarding the gradually declining average customer spending, which is
directly having impact on its profitability.

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5. Indicating whether the CEO shall follow-up questions about the data:
The major follow-up question from the CEO will be regarding the cost structure of the
organisations, which actually indicates about the profits that has been generated by the
organisation over the period. The declining customer spending has been conducted to
increase the demand for the products, whereas the information regarding the cost is not
provided, which does not help in understanding the current profitability growth of the
company.

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Bibliography:
Chandra, Prasanna. Investment analysis and portfolio management. McGraw-Hill Education,
2017.
Pompian, Michael. Risk profiling through a behavioral finance lens. CFA Institute Research
Foundation, 2016.
Salamon, Lisett, and Berenike Stehr. "Application of Copulas in Portfolio Optimization &
Financial Risk Management." (2018).
Zopounidis, Constantin, et al. "Multiple criteria decision aiding for finance: An updated
bibliographic survey." European Journal of Operational Research 247.2 (2015): 339-348.