The following article will guide you about how to mitigate interest rate risk. Introduction: Of the two components of interest rate risk, price risk can have a sudden and dramatic impact on your fixed income portfolio. The reinvestment risk is slow and long drawn in its effects. In the long run, interest rate scenarios change and you will most certainly [...]
Learn how to calculate risk and return on portfolio of securities in a firm. Return on Portfolio: The expected return from a portfolio of two or more securities is equal to the weighted average of the expected returns from the individual securities. Σ(RP) = WA(RA) + WB(RB) Where, Σ(Rp) = Expected return from a portfolio of two securities WA = [...]
Read this article in Hindi to learn about the three main techniques adopted for the revision of portfolio in a company. The techniques are: 1. The Formula Plan 2. Constant Ratio Plan 4. Variable Ratio Plan. Technique # 1. फॉर्मूला प्लान (The Formula Plan): प्रतिभूतियाँ के क्रय-विक्रय सम्बंधी आधारभूत नियम एवं नियमन निवेशक की काफी सहायता करते है । ये [...]