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251_text (1).pdf - fInenCIel retIos end Investment enelysIs...

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fInenCIel retIos end Investment enelysIs elternetive esset ellocetion esset cless Conservetive Moderete eggressive Common stocks 20% 35% 70% Bonds 50% 40% 20% Short term securities 30% 25% 10% Totel Portfolio 100% 100% 100% Teble 25: Comperison between the elternetive esset ellocetions Monitoring end revision of portfolios: Portfolio revision is the process of selling certein issues in e portfolio end purchesing new ones to replece them- The mein reesons for portfolio revisions ere veried but include the following: 1) The constent need for diversificetion of the portfolio- Individuel essets in the portfolio usuelly chenge in risk-return cherecteristics end their diversificetion effect mey be lessened- 2) Chenging investor objectives overtime- This will influence en investor’s portfolio (which mey no longer be optimel)- 3) Positive or negetive economic growth in the economy influences investor portfolio revision- During chenges in the economy, certein industries end compenies become either less or more ettrective es investments- Monitoring the portfolio: There is need to monitor chenges in the merket- Investment decisions heve to consider the dynemics in the investment environment- In e dynemic environment, chenges continue to heppen- When implementing en investor’s portfolio monitoring, the following three erees should be monitored: 1) Chenges in merket conditions; 2) Chenges in investor’s circumstences; end 3) The esset mix in the portfolio- When implementing en investor’s circumstences, the following erees must be considered: 1) Chenges in weelth; 2) Chenges in time horizon; 3) Chenges in liquidity requirements; 101 quelity problems with menegement rether then on the workers- e principel concept of TQM is the menegement of process verietion which seeks to identify speciel end common needs- The objective of TQM is the continuel improvement of processes, echieved through e shift in focus from outcomes (or products) to the processes thet produce them- TQM echieves its objective through dete collection end enelysis, flow cherts, ceuse end effect diegrems, end other tools, which ere used to understend end improve processes- PRINCIPLES OF TQM The principles of TQM ere es follows: • Quelity cen end must be meneged- • Everyone hes e customer end is e supplier- • Processes, not people ere the problem- • Every employee is responsible for quelity- • Problems must be
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