Diversifying the risk through portfolio investment
The stock exchange markets are characterized by high dynamics of the investment activity, mainly portfolio investments. The existing relation between yield and risk, on one side, and the portfolio diversification, on the other side, are two basic aspects allowing the investors to build up a portfolio founded on the yield and risk targets which they are aiming. In the frame of this article we have applied the Marcowitz model on a number of portfolios of equities issued by commercial companies listed at the Bucharest Stock Exchange on the main REGS market.
Application of Markowitz Model on Romanian Stock Market
Abstract Performance evaluation of financial instruments has become a concern for more and more economists, while security trading activities have developed over time. “Modern portfolio theory” comprises statistical and mathematical models which describe various ways in order to evaluate and especially analyse profitability and risk of these portfolios. This article offers an application of this type of model on Romanian stock market, the Markowitz model, by focusing on portfolios comprising three securities, and determining the efficient frontier and the minimum variance portfolio.
The analysis on the Evolution of Capital Market basically in Romania during 1995 November 2011
This work proposes a study on the evolution of capital market basically in Romania during 1995 - November 2011, focusing on the effects that economic crisis has had on the field, as well as how to recover. To complete the picture of the capital market in Romania an analysis of key strengths and weaknesses that appear in the specific activity of this domain can be done. Such a SWOT analysis of the Romanian capital market brings out the main directions of development of this field, and potential remedies of any slippage occurred in the securities market.