Portfolio Analysis Definition and Process

Introduction

A portfolio analysis by definition is a company’s organization of various types of elements in the product mix so as to determine optimum allocation of its resources. There are two things to be measured in the portfolio analysis. They are; the market growth rate and the relative market share. Portfolio analysis is one of the best elements used in strategic planning to maximize in investment activities in allocating resources towards the right of business opportunities. It extends its operations to areas such as the bonds, indexes, commodities, funds and options, equities and securities. It gains its importance since its class has a particular risk which is associated with it. The portfolio analysis will affect the rate of return of a business and its overall investment process (Elton &Edwin 2010).

The process of portfolio analysis can be broadly categorized into two asset levels; risk aversion and analyzing of returns. To start with, risk aversion, it involves analyzing the composition a considering the risk appetite of the investor. An investor will accept investing in an activity which pays low returns than involving in a riskier activity even if it generates high returns. In analyzing the returns, it encompasses calculating the prospective returns through average and compound of returns methods. The average return is an arithmetic mean of all the returns of an individual while compound returns are the arithmetic mean with the cumulative effect on the overall performance. Either part of portfolio analysis is the dispersion of returns. This is a measure of variability or volatility of an asset which involves the measurement of the standard deviation of returns of a particular asset.

Advantages of portfolio analysis

Portfolio analysis encourages management in the evaluation of every business activity and setting of objectives by allocating the resources effectively.
It encourages an organization to use the intrinsic date to supplement management’s judgment.

It incorporates the use of cash flow available for the expansion and growth of an organization.

Disadvantages of portfolio analysis

It is not easy to define the market- product segments.
It gives an illusion of science especially when subjective judgments are applied.

Steps involved portfolio analysis.

Identification of lines of business.

Here the lines of business should be identified (SBUs) to make up association portfolio

Group lines of business

In this step we have three important lines; the core businesses which are the business which supports objectives of business directly as per its strategic plan, support functions make it possible for the business to deliver its core business benefits to its members. The support functions include administrative, accounting and legal (Dickinson, John 1974). The support function is defined to minimize the cost of the functions and the transfer resources so as to support the core business activities. The third line is the money makers which are the source of business revenues to support the association’s core activities. Example of money makers are the rental car discounts, insurance programs, and affinity cards.

I will highlight the other steps in a continuous prose format as follows; comparing the core business with mission statements, defining products and services in every line of the business to determine their relation with the program evaluation matrix, applying the program evaluation matrix to simplify process of analyzing all the products and services in line with association’s portfolio. Determining the product fit to ascertain whether services under review are in line with association’s mission and priorities, determining the ease of funding and implementing whether it is able to provide current and future support, whether the business has a stable source of funding that is measurable and reportable in terms of results(Elton, Edwin 2010).

Conclusion

Portfolio analysis involves steps to reveal the association’s situation. It involves analyzing both internal and external factors to determine the distinctive competence which will enable organization to take advantage of specific environmental opportunities. To achieve this, an organization must consider the lookout of strategic windows which are in other words called the market opportunities.

Work cited

Hult, Henrik. Risk and Portfolio Analysis: Principles and Methods. New York: Springer, 2012. Print.

Elton, Edwin J. Modern Portfolio Theory and Investment Analysis. Hoboken, NJ: J. Wiley & Sons, 2010. Print.

Grandville, Olivier. Bond Pricing and Portfolio Analysis: Protecting Investors in the Long Run. Cambridge, Mass. [u.a.: MIT Press, 2003. Print.

Dickinson, John P. Portfolio Analysis: A Book of Readings. Westmead [u.a.: Saxon House [u.a., 1974. Print.

Get Professional Assignment Help Cheaply

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

Plagiarism free papers
Timely delivery
Any deadline
Skilled, Experienced Native English Writers
Subject-relevant academic writer
Adherence to paper instructions
Ability to tackle bulk assignments
Reasonable prices
24/7 Customer Support
Get superb grades consistently

Online Academic Help With Different Subjects

Literature

Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.

Finance

Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!

Psychology

While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.

Engineering

Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.

Nursing

In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.

Sociology

Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.

Business

We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!

Statistics

We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.

Law

Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
We will have a different writer write the paper from scratch.
Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment Help Service Works

1. Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2. Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3. Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4. Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!