In early January 2013, a merchandise manager focused on the strategy he had followed for his personal investment portfolio during the last three years and with one of the leading insurance firms in Delhi, India, sat in his home office. He was anxious that the talk of tapering U.S. Federal Reserve’s Quantitative Easing Program, would undertake the consequences of the 2008 international financial crisis, and the Indian general elections in May 2014 might affect the value of his investments.
In order to attain higher risk-adjusted returns, he was contemplating diversifying his all-equity portfolio by adding gold. Before he went ahead, he needed to analyze the data with past returns, standard deviations and correlations and then use the Sharpe Ratio to compare the risk-adjusted yields of the diversified portfolio (consisting of gold and equity) vis-a-vis all-equity portfolio. Varun Dawar is connected with Institute of Management Technology, Ghaziabad.
Portfolio Diversification Enigma Case Study Solution
PUBLICATION DATE: October 10, 2014 PRODUCT #: W14504-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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