RISK DIVERSIFICATION STRATEGY OF INVESTMENT ACTIVITIES OF BUSINESS ENTITIES IN UKRAINE
Journal Title: Вісник Київського національного університету імені Тараса Шевченка. Економіка. - Year 2014, Vol 8, Issue 161
Abstract
The concept of diversification in terms of risk management, resulting in various forms of investments, is revealed. The development strategy of both investment strategy and portfolio management strategy is considered. The questions of investment risks minimization in the business entities in Ukraine are revealed. The system of measures and counter prediction of investment risk describes strategies that helps to minimize them through the use of diversification based on the relevant investment strategy and monitoring the implementation of managerial financial decisions in order to ensure comparison of the effectiveness of business operations of the entity with the appropriate level of investment risk. Selected investment policy of the investor and active or passive strategy (model) portfolio management is investigated. Portfolio investment theory distinguishes two types of investment strategies for portfolio management – active and passive. Active strategy (model) management is constantly monitoring the financial instruments, their timely purchase and fast rotation structure of instruments in the portfolio in case of rejection or noninvestment goals that are accepted by investors as strategic investment objectives. The purpose of the passive strategy is to provide an investor yield on average market level with maximum investment protections against adverse environmental changes that may be caused by non-market factors. Selection of the optimal portfolio structure is a balanced combination of indicators such as profitability, liquidity and riskiness. Different strategic models are called to provide such a choice. Diversification of securities underlying construct portfolios provides various options for combinations of securities with diverse dynamics of movement returns. This can happen in the industry, regions and different issuers. Future directions of scientific and practical research that lie in the development and implementation of methods for analyzing and evaluating investment risks is defined, risk maps of the investment environment in Ukraine and systematic provision of risk information to state authorities are developed.
Authors and Affiliations
Alla Stepanova
Keywords
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- EP ID EP404147
- DOI 10.17721/1728-2667.2014/161-8/13
- Views 57
- Downloads 0
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