FINC 340 Week 6 - Tom B

Week  6- Discussion on  concepts covered in Week 6 Assigned Reading

The concepts relate to how investment portfolios are constructed and monitored, including procedures for evaluating investment performance and timing portfolio transactions. In this light, let’s discuss:

1- In your opinion, what is  the importance of portfolio revision and the role of common types of formula plans in timing purchase and sale decisions.  Are you applying it in your own portfolio project?

2-What are the techniques used to measure the amount invested, current income, capital gains, and total portfolio return relative to the amount of money actually invested in the portfolio?  Do you think that Statistical measures and uses like Sharpe’s, Treynor’s,  and Jensen’s measures are effective to measure portfolio return?

3-   Are you considering the use of limit and stop-loss orders in investment timing, the warehousing of liquidity, and the key factors in timing investment sales in order to achieve maximum benefits from your investment portfolio?

4-   What is the duration of a bond?  How was duration considered in the selection of bonds in your portfolio management project? How would you have considered the selection if NOT used in your portfolio?

5- How is the current Investment News of AliBaba and yahoo’s collaboration as well as the Initial Public Offering of the Company in US Markets?  How it may affect the Investment possibilities of many investors in USA?

6-   Most Important Things Learned  - What are the most important things that you learned from the study of this week's readings and assignment?