Figure 5 Efficient Frontier The hyperbola is sometimes referred to as the

Figure 5 efficient frontier the hyperbola is

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(Figure 5) Efficient Frontier: The hyperbola is sometimes referred to as the 'Markowitz Bullet', and its upward sloped portion is the efficient frontier if no risk-free asset is available. With a risk-free asset, the straight line is the efficient frontier . Institute Of Management Development And Research Page 35
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3.8 E) Alpha: Alpha is a measure of an investment's performance on a risk-adjusted basis. It takes the volatility (price risk) of a security or fund portfolio and compares its risk-adjusted performance to a benchmark index. The excess return of the investment relative to the return of the benchmark index is its "alpha." Simply stated, alpha is often considered to represent the value that a portfolio manager adds or subtracts from a fund portfolio's return. A positive alpha of 1.0 means the fund has outperformed its benchmark index by 1%. Correspondingly, a similar negative alpha would indicate an underperformance of 1%. For investors, the more positive an alpha is, the better it is. Institute Of Management Development And Research Page 36
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CHAPTER III RESEARCH METHODOLOGY Institute Of Management Development And Research Page 37
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3.1 OBJECTIVE OF STUDY To study concept of Mutual Fund. To understand the various volatility measures and their significance. To evaluate performance of Equity Mutual Fund Schemes with respect to HDFC Mutual Fund. To find out risk and return relationship and comparison between these schemes. To know if the funds are giving expected returns.. To study the effect of volatility on performance of funds. 3.2 PROBLEM STATEMENT A project report on risk and returns of selected HDFC Mutual Funds Schemes. 3.3 RESEARCH METHODOLOGY Business Research is an organized, data based, systematic, critical, objective, scientific inquiry or investigation in to a specific problem undertaken, with the purpose of finding answers or solutions to it. The information provided could be the result of a careful analysis of data gathered first hand or of the data that are already available. Research Design: Descriptive research design The descriptive research includes surveys and fact-finding enquires of different kinds. The major purpose of descriptive research is description of the state of affairs, as it exists at present. The major characteristic of this method is researchers has no control over the variables, he can only report what has happened or what is happening. The descriptive study is under taken in order to ascertain and be able to describe the characteristics of the variables of interest in a situation. Data Collection: Secondary Data Collection The data collection is the data that constitutes the foundation on which the super structure of statistical analysis is built. The results obtained from the analysis are properly interpreted and policy decisions are taken. Hence if the data is inaccurate and inadequate, the whole analysis may be faulty and the decisions will be misleading.
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  • Fall '17
  • Mahvish ali

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