Modern portfolio theory (MPT) is a theory of investment which tries to maximize portfolio expected return for a given amount of portfolio risk, or equivalently minimize risk for a given level of expected return, by carefully choosing the proportions of various assets. The mathematical framework of MPT makes many assumptions about investors and markets. Some are … [Read more...] about Top 10 Key Assumptions of Modern Portfolio Theory
Investment & Earning
12 Different Types of Bonds – Which is Best Investment Bond for You
A bond is a contract that requires the borrower to pay the interest income to the lender. It resembles the promissory note issued by the government and corporate. The par value of the bond indicates the face value of the bond-like, the value stated on the bond paper. Major Types of Bonds Available for Investment Following are the types of bonds: 1. Premium … [Read more...] about 12 Different Types of Bonds – Which is Best Investment Bond for You
12 Key Factors to be Considered in Industry Analysis
The information developed from economic analysis ad forecasts will help the analyst to visualize in specific the growth patterns and opportunities of various industry. It's the relative strength and weakness of a particular industry. Important Factors in Industry Analysis The most important of the characteristics that are to be evaluated in industry analysis can be … [Read more...] about 12 Key Factors to be Considered in Industry Analysis
19 Key Advantages and Disadvantages of Mutual Funds
Mutual funds are turned to be the most preferred choice worldwide for both small and big investors due to their numerous advantages. It is all about long term financial planning. These benefits mainly include diversification, professional management, the potential of returns, efficiency, and easy to use. Mutual fund investment carries low risk because of their … [Read more...] about 19 Key Advantages and Disadvantages of Mutual Funds
9 Broad Types of Mutual Funds: Choose Right Mutual Fund
A mutual fund is a professionally managed firm of collective investments that pools money from many investors and invests it in stocks, bonds, short term money market instruments, and or other securities. In a mutual fund, the fund manager, who is also known as the portfolio manager, trades the fund's underlying securities, realizing capital gains or losses, and collects … [Read more...] about 9 Broad Types of Mutual Funds: Choose Right Mutual Fund