Portfolio from Qatar exchange Assignment Example | Topics and Well Written Essays - 1500 words

Portfolio from Qatar exchange - Assignment Examplety of giving maximum returns, but also include in the investment basket of less risky investment assets, with look of minimizing the investment loss should one asset suffer poor performance (Daniel et al. 1998). As behavioral scientists suggest, most investors tend to be risk averse and taking this into consideration, I carried out proper analysis of the grocery before deciding on the best class of assets to invest in. This is done by looking at the historical performance of the desired shares to gain a better understanding and hence forecasting of the mathematical succeeding(a) performance.In the course of carrying out an investment in the money and capital markets, an investor should be up to date with the market information as it plays a bigger part in determining the paleness price movement. Also, in considering investing in the stock market an investor should carry out thorough theater of operations of the companies in whi ch he intends to purchase the stocks by paying much attention to its financials, the management and also its future plans. Further, for an investor to realize his investment goal, they should adopt an investment strategy that is consistent with his risk tolerance attitude sorrow to which a mismatch could otherwise lead to maximum loses.The following set of measurements was conducted to assess the performance of incompatible classes of portfolio. We used these tests to perform Treynor Measure, which helped us decide on the best portfolio select the best portfolio among the six options, which has the last riskThe best portfolio is one that balance returns with risk. Treynor Measure can be used to measure the winner of the successful portfolios, by reviewing both risk and return together. To estimate risk, Treynor Measure takes into consideration the beta coefficient, which measures the excitability of the portfolio to the market (Hbner 415). The following formula is used to calcula te Treynor MeasureIn this case, beta is represented by the standard deviation