CHARACTERISTICS OF INVESTMENT PORTFOLIOS PASSIVE MANAGEMENT STRATEGY ON THE CAPITAL MARKET
Journal Title: Challenges of the Knowledge Society - Year 2013, Vol 3, Issue 0
Abstract
The strategies of investment portfolios management on the capital market involves a range of transactions with different financial securities, aimed at optimizing the results. On a developed and efficient capital market, with a high liquidity level, portfolio management primarly depends on investor’s targeted level of return and the risk profile of the investor. Passive strategy of investment portfolios management is applied especially by risk aversion investors, who are taking into account all existing risks in the capital market and seeking to preserve the value of investments, rather than increasing its value. This strategy presume that the investor has no information about the prices and the return of securities that would make him to give to his investment portfolio a different structure from the structure of capital market portfolio. Therefore, he will seek a return level equal to the return on the market portfolio, minimizing the portfolio risk up to eliminating the specific risk.
Authors and Affiliations
MIHAELA SUDACEVSCHI
Keywords
Related Articles
- EP ID EP94115
- DOI -
- Views 176
- Downloads 0
ACCESS TO A COMPUTER SYSTEM. BETWEEN LEGAL PROVISIONS AND TECHNICAL REALITY
Nowadays, on a rise of cybersecurity incidents and a very complex IT&C environment, the national legal systems must adapt in order to properly address the new and modern forms of criminality in cyberspace. The illega...
THE IMPACT OF MANAGEMENT CONTROL ON THE HUMAN FACTOR AND CONSEQUENTLY ON ENTERPRISE PERFORMANCE
The current economic environment where enterprises run their activities is characterized by diversified, competitional supply, superior to the demand; a supply that is heterogenous, unstable both quantitatively and quali...
COMPARATIVE ANALYSIS OF THE CAUSES OF ABSOLUTE NULLITY OF THE CONTRACT IN THE ROMANIAN AND THE SPANISH CIVIL LAW
The present paper is aimed to present a comparative analysis of the causes of absolute nullity of the contract in the Romanian and the Spanish civil law. Thus, the study focuses on the presentation of both similarities a...
CLOUD COMPUTING AND INTERNET OF THINGS FOR SMART CITY DEPLOYMENTS
Cloud Computing represents the new method of delivering hardware and software resources to the users, Internet of Things (IoT) is currently one of the most popular ICT paradigms. Both concepts can have a major impact on...
THE CORRELATION BETWEEN THE INHERITED DEBT AND THE RIGHT OF OPTION ON SUCCESSION
A natural person’s patrimony consists, apart from rights (assets of the succession), of a liabilities side as well related to obligations that the patrimony’s holder bequeaths onto the heirs following his/her death. The...