Investment Analysis and Portfolio Management

Running head: INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT
Investment Analysis and Portfolio Management
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1INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT
Executive Summary:
The report analyses all the relevant points regarding the investment portfolio creation, while
detecting the viable investment option presented to investors. Further analysis is mainly
conducted on Efficient Frontier, which allows the investors to detect the investment options, that
would suit their investment criteria. The investment asset that is analyzed are Australian shares,
US shares, Brent oil, Australian bonds and US fed funds. Moreover, adequate statistical
calculations such as covariance, correlation and bordered covariance are mainly used for
identifying the best variable template that is used for completing the overall Efficient Frontier.
Lastly, the significance of minimum variance portfolio is highlighted, which is currently
demanded by maximum of the investors who have conservative investment approach.

2INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT
Table of Contents
Introduction:....................................................................................................................................3
1. Briefly discussing about the five asset class in context to AM, GM, and SD:............................3
2. Discussing the implications of the five assets on efficient frontier and CAL:............................7
3. Stating the reasons behind the popularity of Minimum variance portfolio, while synthesise
about the modern portfolio:...........................................................................................................10
Conclusion:....................................................................................................................................11
References:....................................................................................................................................12

3INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT
Introduction:
The main focus of the overall assessment is to identify and create an adequate level of
portfolio at could be utilized by investors for improving Britain from the capital exposure. The
portfolio created in the assessment directly focuses on the efficient Frontier and minimum
variance portfolio, as it allows the investors to identify and select the most viable investment
opportunity. Further analysis is based on the statistical calculations, which are used to identify
the return and risk contributions of each asset class. The major class that is used in the
assessment is Australian shares, US shares, Brent oil, Australian bonds and US fed funds.
Moreover, adequate statistical calculations such as covariance, correlation and bordered
covariance are mainly used for identifying the best variable template that is used for completing
the overall Efficient Frontier. Lastly, the significance of minimum variance portfolio is
highlighted, which is currently demanded by maximum of the investors who have conservative
investment approach.