Багцын удирдлага

Unit Four Portfolio Management

Санхүүгийн англи Хичээл 4 Багцын удирдлага

Exercise

Match these portfolio management terms with definition below

Portfolios                                                                    the efficient frontier The capital asset pricing model                                    beta asset allocations                                                          trade-off             the standard deviation                                                  security market line the expected value                                                       Arbitrage pricing theory

To determine 1 ……………..., we multiply each possible outcome by its probability of occurrence. The commonly used measure of dispersion is 2……………., which is measure of the spread of the outcomes around the expected value. This line is efficient because the portfolios on this line dominate all other attainable 3………... This line is called 4……………because the portfolios on the efficient frontier provide the best risk-return trade-off. The indifference curves show the investor’s 5……………between risk and return. 6………………takes off where the efficient frontier concluded through the introduction of a new investment outlet, the risk-free asset. In analyzing the performance of an individual security, it is first important to measure its relationship to the market through the 7……… coefficient. We actually express the trade-off between risk and return for an individual stock through the 8………………….. 9 ………………… assumes a linear return generating model that makes the return on an investment a function of more than one factor. The designation of funds into various categories of assets is called 10……………..

Vocabulary

Expected value – хүлээгдэж буй утга (үнэлгээ)

Possible outcome – боломжит үр дүн, байж болох утга

Dispersion – дисперс

Standard deviation – стандарт хазайлт

Line – шулуун

Portfolio – багц

Efficient frontier – үр ашгийн муруй

Trade-off – тэнцвэр, тэнцэл

indifference curves – ялгаагүйн муруй

relationship – хамаарал

Beta - бета

Capital asset pricing model – капитал хөрөнгийн үнэлгээний загвар

Security market line – үнэт цаасны зах зээлийн шулуун

Arbitrage pricing theory – арбитраж үнэлгээний онол

Asset allocation – актив хувиарлах

Answer to exercise

1.      Expected value

2.      Standard deviation

3.      Portfolios

4.      Efficient frontier

5.      Trade-off

6.      Capital asset pricing model

7.      Beta

8.      Security market line

9.      Arbitrage pricing theory

10.  Asset allocation

Listening tape script 4

Portfolio management Portfolio management is cage for protecting your assets as an investor. Balance for portfolio protects the investor by diversifying risks. The underlying principle for risk return is the investment higher returns carry higher risk. The basic principle for portfolio management really asset allocation. In that process sitting down decline term meaning what their needs, goals, injectors or taking investment money their have spreading into different asset class. Three asset classes you can choose cash, fixed-income securities and equities. Cash is their to provide equity in case needs money or invest liquid other investment and also use in opportunistic tool so things became particularly attractive to their have money to take an advantage. Fixed-income portfolio provides the ability and steady yield or dividend flow fund investment or an equity designing over time together over time growth most people need to face inflation.

Translating Portfolio investments

The investor is basically risk-averse and therefore will demand a premium for incremental risk. In an efficient market context, the ability to achieve high returns may be more directly related to absorption of additional risk than superior ability in selecting stocks. Risk for an individual stock is measured in terms of the standard deviation around a given expected value. The larger the standard deviation, the greater the risk. To the extent the correlation coefficient is less than +1, there will be some reduction from the weighted average of the standard deviation of the individual stocks that we are combining. A negative correlation coefficient will provide substantial reduction in the portfolio standard deviation. The assumption for capital asset pricing model is that an individual can choose an investment combining the return on the risk-free asset with the market rate of return, and this will provide superior returns to the efficient frontier at all points except M, where they are equal. From the portfolio manager’s point of view, the arbitrage pricing theory can potentially affect the actual return on one stock or a portfolio. If a manager were concerned about a recession and this information were not yet factored into stock prices, he or she could create a portfolio that insulated the returns on the portfolio from unpleasant surprises. On the other hand, if the market had factored in expectations for a recession and the manager expected good business-cycle news, he or she could buy stock sensitive to business-cycle news.

Vocabulary

1.      risk-averse – эрсдэлд дургүй, эрсдэлээс зайлсхийх

2.      Premium – нэмэлт төлбөр, зардал

3.      incremental risk – өсөн нэмэгдэж буй эрсдэл

4.      combine - хослуулах

5.      absorption -  шингээх

6.      correlation coefficient – корреляцийн коеффицент

7.      weighted average – жигнэсэн дундаж

8.      combine – хослуулах

9.      recession – уналт, бууралтын үе

10.  factored into – оруулах

11.  concerned about -

12.  business-cycle – бизнесийн мөчлөг, эдийн засгийн мөчлөг

13.  sensitive to – мэдрэмжтэй ...

14.  insulate – тусгаарлах

Translating

1.      The investor is basically risk-averse and therefore will demand a premium for incremental risk.

Тухайн хөрөнгө оруулагч нь үндсэндээ эрсдлээс зайлсхийдэг учираас өсөн нэмэгдэж буй эрсдэлд нэмэлт төлбөр шаарддаг.

2.      In an efficient market context, the ability to achieve high returns may be more directly related to absorption of additional risk than superior ability in selecting stocks.

In ………… context – ................-ын хүрээнд

related to ............. - ..................тай хамааралтай

in selecting stocks – хувьцаа сонгох

Үр нөлөөт зах зээлийн хүрээнд өндөр өгөөжтэй байх нь хувьцаа сонгох авъяас гэхээсээ илүүтэй нэмэлт эрсдэлийг шингээх чадвараас илүүтэй хамаардаг.

3.      The larger the standard deviation, the greater the risk.

The …………….. the………………. - ......... тусам ......... тусам

Стандарт хазайлт их байх тусам, эрсдэл төдий чинээ их байдаг.

4.      To the extent the correlation coefficient is less than +1, there will be some reduction from the weighted average of the standard deviation of the individual stocks that we are combining.

(To the extent the correlation coefficient is less than +1)1, (there will be some reduction from the weighted average of the standard deviation of the individual stocks)3 that (we are combining)2

individual stocks – тухайн нэг хувьцаа

that - буй

To the extent .................... –  ..........................хирээр, хэмжээгээр

Корреляцийн коеффицент нь +1 –с бага байх тусам хослолоор сонгосон тухайн хувьцааны стандарт хазайлтын жигнэсэн дундажаас буурдаг.

5.      A negative correlation coefficient will provide substantial reduction in the portfolio standard deviation.

substantial reduction – асар их хэмжээгээр бууруулах

Корреляцийн сөрөг коеффицент нь багцын стандарт хазайлтыг ихээхэн хэмжээгээр бууруулдаг.

6.      The assumption for capital asset pricing model is that an individual can choose an investment combining the return on the risk-free asset with the market rate of return, and this will provide superior returns to the efficient frontier at all points except M, where they are equal.

Individual – хувь хүн

combining ................... with ....................... – ийг ..................... аар хослуулна

Хувь хүн нь эрсдэлгүй активын өгөөжийг өгөөжийн зах зээлийн хэмжээгээр хослуулах байдлаар хөрөнгө оруулалтыг сонгоно гэж капитал хөрөнгийн үнэлгээний загвараар төсөөлөх учираас тэнцүү байх М-ээс бусад дурын цэгээр үр ашгийн мужид илүү давуу өгөөжтэй байна.

7.       From the portfolio manager’s point of view, the arbitrage pricing theory can potentially affect the actual return on one stock or a portfolio.

From the ................... point of view – ....................өнцгөөс авч үзвэл

Багцын менежерийн өнцгөөс авч үзвэл арбитраж үнэлгээний онол нь нэг хувьцаа эсвэл багцын бодит өгөөжинд нөлөөлөх магадлалтай байдаг.

8.      If a manager were concerned about a recession and this information were not yet factored into stock prices, he or she could create a portfolio that insulated the returns on the portfolio from unpleasant surprises.

(If (a manager were concerned about a recession)1 and this information were not yet factored into stock prices)2, (he or she could create a portfolio)4 that (insulated the returns on the portfolio from unpleasant surprises.)3

factored into -

Хэрвээ менежерээс эдийн засгийн бууралтын талаар санаа зовниж буй нөхцөлд ийм мэдээллийг хувьцааны үнэлгээнд харгалзаж авч үзэхгүй бөгөөд тэрбээр гэнэтийн тааламжгүй байдлаас багцын өгөөжийг салгана.

9.      On the other hand, if the market had factored in expectations for a recession and the manager expected good business-cycle news, he or she could buy stock sensitive to business-cycle news.

sensitive to ................ - ................ -д мэдрэмжтэй

(On the other hand, if the market had factored in expectations for a recession)1 and (the manager expected good business-cycle news)2, (he or she could buy stock sensitive to business-cycle news)2

Нөгөө талаар, зах зээл уналтанд орох хүлээлтийг тооцоолоод менежерийн зүгээс бизнесийн таатай мөчлөгийг хүлээж буй нөхцөлд бизнесийн мөчлөгийн мэдээлэлд мэдрэмжтэй хувьцааг худалдан авна.

Speaking Conservative portfolio strategy tapescript 5

Paula Foley: Ok, that’s all I have to say about capital preservation and accumulation, so now I’II just summarize my three main points again. A conservatively managed portfolio should be widely diversified; it should be expected to rise or fall in line with one or more major stock indices; and it’s more important to preserve capital than to accumulate it. So, to conclude, I have two recommendations. Firstly, I think we need to diversify our clients’ portfolios more widely, probably across more than one stock market. And, secondly, given the current volatility of the markets, I think we all need to pay more attention to preserving our clients’ initial capital sums than to increasing them.

Thank you all for your attention. Does anyone have any question or comments?

Answers: She recommends that they diversify their clients’ portfolio more widely (probably across more than one stock market). She also recommends that they pay more attention to preserving clients’ initial capital sums than to increasing them.

Vocabulary

Preservation

Accumulation - хуримтлуулах

Volatility – хэлбэлзэл, савалгаа

Initial capital sums -

Problem

1.      Suppose the return on the market is expected to be 14%, a stock has a beta of 1.2, and the T-bill rate is 6%. The SML would predict an expected return on the stock of If one believes the stock will provide instead a return of 17%, its implied alpha would be 1.4%.

2.      Suppose we invest 75% in bonds and only 25% in stocks. We can construct a portfolio with an expected return higher than bonds (0.75 x 6) + (0.25 x 10)= 7% and, at the same time, a standard deviation that is less than bonds. Using the variance of the rate of return on the two-risky asset portfolio,  , we find that the portfolio variance is   accordingly, the portfolio standard deviation is  which is less than the standard deviation of either bonds or stocks alone. Taking on a more volatile asset actually reduces portfolio risk. Such is the power of diversification.

Маркетинг, менежмент, нягтлан бодох бүртгэл, санхүү, статистик, экономиксийн англи нэр

томъёог орчуулах хэрэгцээ гарвал дараах толь бичгийг ашиглах боломжтой.