Portfolio Managment & Risk Analysis
For the portfolios, compute the returns, standard deviations and coefficient of risk variation.
Analyze the risk and return patterns and diversification benefits.
Based on the risk/return analysis, which portfolio selections are the most profitable?
How do the portfolios’ performances compare to the SP 500’s?
What are the advantages and disadvantages of including international stocks in the portfolio?
If Mr. Smith chooses to include foreign stocks in the portfolio, how can he use derivatives to hedge against currency risk which can be present from international investing? Your well-written draft should meet the following requirements:
