Here is the synopsis of our sample research paper on Portfolio Choice and Evaluation. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 6 page paper looks at the way that portfolio management may make investment choices and the potential value, alignment and contradictions found in the concepts of the value and constrain strategy of Graham and Dodds and Fama’s efficient market hypotheses (EMH), discussing their use and value to an investment manager. The bibliography cites 5 sources.
Page Count:
6 pages (~225 words per page)
File: TS14_TEportglam.doc
Buy This Term Paper »
Unformatted sample text from the term paper:
contain evaluated. Xu (et al, 2010) looks at the potential for short term returns based on the value and constrain strategy of Graham and Dodd, (1934 quoted Xu et al,
2010). Inherent in this idea is the belief that the market may be outperformed by purchasing values stock; stocks that are undervalued by the market, and sell glamour stocks; stock
which are over valued in relationship to their measurable value, often stocks that are fashionable. Furthermore, it is argued that as many glamour stocks are also favoured by portfolio and
investment managers as they are often seen as solid stocks (Xu et al, 2010). This appears to be an approach which contradicts the more popular model and recognized theory of
efficient market hypothesis. The approach of Graham and Dodd may be argued as being both simplistic and na?ve, but also one it appears to make sense, as the way in
which the markets operate on not perfect, and different investors, or portfolio managers, may believe that differing stocks are either under or over priced at any point in time (Howells
and Bain, 2007). Investment managers undertake the decisions in order to try to maximize returns, identify stocks that they believe will realize growth for their clients, either in the short,
medium or less often in the long term depending upon and the type of investment fund which is being managed. However, according to efficient market hypothesis it is not
possible to outperform the market. The basic idea of this paradigm is that market prices cannot be beaten as all information relevant in the assessment of the value of shares
is a ready included in the share price (Fama, 1965, 1991). Within this framework it is believed that at any point in time the stock or security prices will
...