Risk Management and Investment Coursework Portfolio Lab Report

Risk counseling and Investment Coursework Portfolio - Lab Report ExampleI also limited the number of shares because of the fee charges that runs the portfolio. When the portfolio symmetricalness grew from the investment recollects, I increase the number of shares and changed the investment of the contributions. After passing the initial phase, I intend to tweak the investment so that they spread across the portfolios stock. I also gave a resuscitate on the number of shares that strikes a perfect balance between ease management and diversification (Fabozzi 1989). I settled on 10 portfolios because it was easy to manage. The allocation I employed is 20% for each stock. acquittance through the computer memorys list, I avoided investing on unpredictable outcomes like future inflation.Although the funds performance looks good, there still yet there exist many risks in this portfolio that unavoidable to be cared. In this section, the funds risk analysis will described and discussed in the rewrite as follows. Standard deviation is an indicator to measure the prices fluctuation or the returns volatility. A oversizedr standard deviation promoter a larger volatility, which contains the bigger risk. As is shown in the overview of the investment fund, the largest standard deviation of price is 252.60 while the smallest is 2.77. Thus DGE is more risky than the others and the tie down brings few risks to the portfolio. Moreover, the standard deviation of return ranges from 0.00213 to 0.0198. That demonstrates that PRU has the largest risks and the bond do few contributions to the risk of the fund. In sum, the assets with large standard deviation may prevent the funds aims to be achieved.If the confidence level is 95%, then the maximum and minimum VaR of the assets are 415.49 and 4.5593, which means there is 5% chance in a day that DGE and GILT face a loss of over 415.49 and 4.5593. Meanwhile, the portfolios VaR is 74189974.39, which means there is 95% possibilit y that the fund will not suffer a loss more than 74189974.39 in a day.