lec01-overview-3pp - Fin406 Fall 2009 Smeal College of...

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Unformatted text preview: Fin406 Fall 2009 Smeal College of Business Penn State University 1/11/2010 2009 JingZhi Huang 1 Lecture 1 - Overview Fin 406 - Fall 2009 1 Professor Jingzhi Huang Smeal College of Business Penn State University Copyright 2009 JZH Portfolio Management Process Investors or portfolio managers typically take the following portfolio management approach: Planning Execution Feedback 2 Evaluate Performance Trade Security Selection Asset Allocation Develop Market Expectations Define Objectives and Constraints Return Risk Tax Horizon Economy Markets Risk-Return Model Benchmark Portfolios Risk-Return tradeoff Fixed Income Equity Cash Orders Leverage Margin After-tax Returns Risk Risk-Adj. Ret. Benchmarks I. Data on Investors Investor type, objectives, and constraints Individual investors Objective: risk-return tradeoff Constraints: investment horizon, risk preference, tax, liquidity 3 Mutual funds...
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This note was uploaded on 04/06/2010 for the course FIN 100 taught by Professor Staff during the Fall '08 term at Pennsylvania State University, University Park.

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lec01-overview-3pp - Fin406 Fall 2009 Smeal College of...

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