Portfolio Management Essay Example | Topics and Well Written Essays - 1000 words

Portfolio Management - Essay Example The strategies on the other hand demands awareness of the market conditions and stock volatilities to decide on the investment strategies in order to maximize the returns. Since risk in investments is unavoidable, the management of portfolio helps to mitigate the risk with appropriate investment strategies. The various investment strategies for formation of a portfolio are given below. Diversification The investment in assets is characterized by risk and return. These are two types of risk, namely the systematic risk and the unsystematic risk. The systematic risks are the risks that appear due to uncertainties in the market condition. The unsystematic risks are due to the fluctuation of the performance of individual companies. The diversification strategy is used in portfolio investments in order to reduce the unsystematic risk. Through the formation of a portfolio containing investments on a wide range of assets reduce the risk of the overall portfolio due to positive and negative e ffects of the individual assets. The diversification strategy helps to obtain optimum return through diversification of risk. ... stematic market risk could not be mitigated, the use of non-correlating assets helps to reduce the overall risk of the portfolio with the optimization of returns. Leap Puts and other Option The use of Put options and the Long Term Equity Anticipation securities are alternative investment strategies adopted by the investor. There may be cases where the returns of the portfolio have increased in short period of time and is likely to fall due to market volatility. However, there may be anticipations of future rise of returns. The objective behind adoption of this strategy is to secure the higher returns obtained and at the same time not withdraw from the position of investment. The use of Put options enables the investor to enter into a contract of selling the security at a particular price on a future date. Thus the investor could hold on to their investments without allowing the gains achieved to be depleted. The LEAP Puts are used as long term investment strategies with the same obje ctive. Stop Losses This is another investment strategy in order to protect the portfolio from the risk of fall in the value of shares. The use of stop losses means that the stock would be automatically sold if the price of the share falls to the pre-fixed value of stop losses. The use of stop losses sells the low performing shares and provides an impulse to the investor to investment in shares that could replace the sold share in the portfolio. Dividends The use of information on dividend payments by the companies form part of the investment strategies. Especially in cases of market downturn, the information on dividend is used by risk-averse investors and an important to hedge their portfolio. The dividends paid by the companies are interpreted by the investors as indicators of strong

John F. Kennedy and Martin Luther King jr Essay

John F. Kennedy and Martin Luther King jr - Essay Example As a result of their public awareness campaigns, the populous began questioning traditional values leading to emergence of new movements. The changes in the USA were part of a larger global trend that influenced humanity as a whole. During this period, there was the Cold War and Vietnam War, construction of the Berlin Wall in addition to the gaining of independence by former colonies was constructed. Therefore, John F. Kennedy and Martin Luther King Jr. were a part of global revolutionists who were able to go with the changing nature of the world. John F. Kennedy John F. Kennedy, known as Jack by members of family and close friends was born on May 29, 1917, in Brookline, Massachusetts to Joseph and Rose Kennedy a family of Irish Catholics (â€Å"John F. Kennedy†). Being from a wealthy family background, he grew up in a favorable environment where he was assured of the best educational facilities in addition to having a conducive economic and social environment given that he an d his siblings enjoyed the luxuries of attending elite private schools, sailboats, summers homes as well as having servants to tend to their needs ("John Fitzgerald"). Although he suffered various illnesses and health complications in the course of his childhood, these setbacks did not curtail John F. Kennedy’s educational ambitions as he was able to join Harvard University in 1936 (Kenney 12). During his Harvard University days, Kennedy’s father was the U.S. Ambassador to Great Britain, from where Kennedy gathered resources for his final thesis. Kennedy returned to the USA to finish his senior Harvard University where he worked on his thesis that afterwards amended and published with the title Why England Slept in which examines how the British government reacted to Hitler’s rise to power before, during and after the world war two. After Harvard University education, Kennedy enlisted into the American Navy in 1941 which catapulted him to national prominence whe n his motor torpedo boat PT 109 was sunk by a Japanese destroyer. Kennedy’s heroic act when he saved one remember of his crew although he had also sustained injuries in his back made him achieve greater accolades from the US public. Describing Kennedy’s actions Dallek sees Kennedy as the best unifying instance of American egalitarianism (98). Many in the US saw Kennedy as embodying how the country’s social relations between the rich and poor should function being child from a wealthy family who made a choice to voluntarily risk his life in the name of nation. Although, his family was grooming his elder brother, for political office, Kennedy was convinced by his family and friends to take a political career after his brother Joe died in the Second World War (Dallek 117). After the war, Kennedy’s main career objective was to join journalism profession where his first assignment was at the United Nations Conference in San Francisco as well as covering Potsda m Conference. A key element that made Kennedy’s political career in congressional, senatorial and presidential positions a success was his family’s wealth, influential national status and prestige in addition to the tales of his heroic acts during the world war two. Barnes notes financial support was central to Kennedy’s success in all these campaigns with his father being in charge of all financial