logo

Money Banking and Finance Assessment

11 Pages2731 Words452 Views
   

Added on  2020-11-12

About This Document

Money Banking and Finance Assessment INTRODUCTION 1 MAIN BODY1 QUESTION 1 1 QUESTION 2 1 QUESTION 3 2 QUESTION 4 4 CONCLUSION 6 REFERENCES 7 INTRODUCTION Money banking consists of the credit that banks extend their deposits. In this report, there are following topics are covered such as: to produce a set of minimum variance & efficient portfolios with & without shorting by using 20 stocks, investment objectives and policy and analyse risk and return performance against an appropriate benchmark. MAIN BODY

Money Banking and Finance Assessment

   Added on 2020-11-12

ShareRelated Documents
Money Banking andFinance Assessment
Money Banking and Finance Assessment_1
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY ..................................................................................................................................1QUESTION 1...................................................................................................................................1QUESTION 2...................................................................................................................................1QUESTION 3...................................................................................................................................2QUESTION 4...................................................................................................................................4CONCLUSION .............................................................................................................................6REFERENCES................................................................................................................................7
Money Banking and Finance Assessment_2
Money Banking and Finance Assessment_3
INTRODUCTIONMoney banking consists of the credit that banks extend their deposits. Translations made using checks drawn on deposits held at banks includes the use of bank money. To manage the finance is important so that higher returns can be generated and it is beneficial for the growth. Banks are the financial institution who manage the money and also control the activities which are associated with it. In this report, there are following topics are covered such as: to produce a set of minimum variance & efficient portfolios with & without shorting selling by using 20 stocks, investment objectives and policy and analyse risk and return performance against an appropriate benchmark. Apart from this it discuss about long and short portfolio constructions techniques, motivation to control interest rate, inflation targeting, foreign currency derivatives & swaps and currency forward agreement. MAIN BODY QUESTION 1Effective portfolio: Effective portfolio is that which involves the different number ofassets and they are combine together with effective combination which minimize the chances ofrisk. The factors which have high risk they are not taken so that chances of looseness can bereduce.Risk and return: The risk is involved in the every business and if a person takes more riskthan there are chances of higher return. Without risk there is no return and risk is assumed to bemeasurable by the variability around the expected value of the probability distribution of return. Two risky assets portfolio: It is that portfolio in which more risk because of lack ofanalysis. The degree to which a two-risky-assets portfolio reduces variance of returns depends onthe degree of correlation between the returns of the securities. Efficient frontier: The possible of assets combination in which risk and return are plottedand the line along the upper edge of this area can be called efficient frontier (Chauhan, 2015).QUESTION 2An investment objective in regards to financial planning is the reason behind investing. Itdefines how mutual fund invests its portfolio. Depending on the risk appetite of investor, thereare three main objective of investment: safety, growth and income. 1
Money Banking and Finance Assessment_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Money banking and finance : assessment
|9
|2100
|55

Efficient Portfolio Frontier: Maximizing Return for Risk
|3
|1024
|100

Portfolio Management For Risk Return Profile of the Client
|17
|3786
|15

(solved) investment analysis and portfolio management pdf
|15
|4056
|119

Portfolio Management
|8
|2079
|315

Investment and Portfolio Management : Assignment
|15
|3787
|63