**MY-ASSIGNMENTEXPERT™**可以为您提供sydney **FINC6009 Portfolio Theory**投资组合课程的代写代考和辅导服务！

**MY-ASSIGNMENTEXPERT™**

#### 这是悉尼大学投资组合课程的代写成功案例。

**FINC6009**课程简介

This unit covers several aspects of modern/post-modern portfolio theory. An introduction to mathematical optimisation techniques in the presence of uncertainty is covered and results from modern portfolio theory to the Capital Asset Pricing Model derived. The unit also examines other popular models such as the Arbitrage Pricing Theory and Black-Litterman Model and concludes with some topical examples from industry. There is a degree of mathematical sophistication associated with this unit and consequently, students should be comfortable with a mathematical approach. However, the required mathematical tools are covered in the unit.

## Prerequisites

At the completion of this unit, you should be able to:

**LO1**. describe portfolio and investment problems in a mathematical context to enable an advanced approach to portfolio construction.**LO2**. provide a detailed explanation of the mathematical and economic principles of risk and return and demonstrate how that relates to portfolio theory.**LO3**. apply the principles of portfolio theory to solve practical investment problems utilising EXCEL and/or other software packages**LO4**. contrast different approaches to portfolio theory and explain the strengths and weaknesses of the various models covered.

**FINC6009 Portfolio Theory** HELP（EXAM HELP， ONLINE TUTOR）

Beta factors exhibit the following pivotal characteristics:

The market as a whole has a $\beta=1$

A risk-free security has a $\beta=0$

A security with systematic risk below the market average has a $\beta<1$ A security with systematic risk above the market average has a $\beta>1$

A security with systematic risk equal to the market average has a $\beta=1$

Just as beta factors can be defined to interpret the systemic risk of individual investments, they can also be applied to a portfolio of investments.

Consider an equity fund manager with a highly diversified investment portfolio. It is close to the market portfolio, which her company still wishes to track. With new funds available, she chooses to add the following plc common stocks to the fund with individual betas quoted from a commercial service.

$\begin{array}{ll}\text { Investment } & \text { Quoted } \ \text { Jones } & 0.83 \ \text { Taylor } & 1.15 \ \text { Wyman } & 0.83 \ \text { Stewart } & 1.14\end{array}$

With betas within a narrow range above and below the market average of 1.0, these investments should represent a spread of risk that doesn’t compromise the current risk profile of her fund. However, before any detailed risk assessment can be undertaken, the proportion of funds allocated to each investment must be determined.

The Review Activity for Chapter Six of our Theory text focussed on capital market volatility and its implications for active portfolio management designed to “beat the market”. This was presented as an alternative to a passive strategy of “buy and hold” that uses a tracker fund based on stock market indices. Of particular interest now, is whether the assumptions of efficient markets and the techniques of stock market analyses with which you are familiar (fundamental and technical) support one approach, rather than another, in today’s business environment. The purpose of the Exercise is to test your knowledge of the volatile world within which portfolio fund managers apply their theories.

Required:

1) Outline the reasons for stock market volatility over the past decade.

2) Given your previous study of the efficient market hypothesis (EMH) and the assumptions upon which it is based, briefly explain the weakness of “technical” and “fundamental” analyses in volatile markets.

3) Without access to insider information (the strong form EMH) or pure speculation, evaluate the relative merits of “active” and “passive” portfolio strategies for trading securities when markets are characterised by geo-political, economic, business and financial uncertainty?

4) Briefly summarise the findings of your research.

If you have read the SFM Theory and Exercise texts you will already be familiar with how companies and securities are valued using dividend and earnings models, as well as their strengths and weaknesses. If not you should revise Chapter Five of both books.

A fundamental problem associated with all dividend and earnings valuations, (even those of Gordon and Modigliani-Miller op. cit.) is how to price risk, particularly when markets are volatile. To summarise, they fail to discriminate between the impact of macro economic factors on market values and the effects of micro economic factors caused by events affecting individual companies.

In this respect, the CAPM based on portfolio theory is a superior model. By formally pricing risk, it not only evaluates the characteristics of a particular security, but also those for a portfolio.

**MY-ASSIGNMENTEXPERT™**可以为您提供SYDNEY **FINC6009 PORTFOLIO THEORY**投资组合课程的代写代考和辅导服务！