Portfolio Management Course Tip
Hi all,
In my investment class, I was assigned in a group for a portfolio management project. quite big portion of the grade is based on the portfolio performance based on class ranking so I want to make sure I do pretty well.
Any tips I should keep in my before thinking of which stocks,options etc to buy? Should i keep diversification in my in such short (4month) project?
Thanks all!
here's a tip. if you don't really understand options, stay the hell away from em. if this is only stocks, i would look to diversify across sectors and industries to keep a balance. are you being assessed based only on absolute return, or risk-adjusted return?
Is the only way to try to assess risk-adjusted return in practice to use the Sharpe ratio? Or are there other ways to do it?
yes; sortino and something called Omega Ratio are less common but also used; they are sharpe variants
yes; sortino and something called Omega Ratio are less common but also used; they are sharpe variants
thanks maximum =] I believe that we are being assesed based only on absolute return. But I guess taking risk into account for my final report writing would be great idea
Diversification isn't that important if it's a 4 month project. Just pick individual companies/securities that you think will perform well in the short-term. For example if you think the oil industry will outperform in the next few months due to rising demand, then find some cheap well-managed companies
My friend made multiple portfolios, and at the end of the semester, picked the one with the best performance, and handed that in for his class project.
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