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

Portfolio from Qatar exchange - Assignment Example ty of giving maximum returns, but also include in the investment basket of less risky investment assets, with intent 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 market 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 possible future 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 equity price movement. Also, in considering investing in the stock market an investor should carry out thorough study of the companies in which 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 failure to which a mismatch could otherwise lead to maximum loses. The following set of measurements was conducted to assess the performance of different 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 lowest risk The best portfolio is one that balance returns with risk. Treynor Measure can be used to measure the success 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 volatility of the portfolio to the market (HÃ ¼bner 415). The following formula is used to calculate Treynor Measure: In this case, beta is represented by the standard deviation;