Portfolio management Assignment Example | Topics and Well Written Essays - 2000 words

Portfolio management - Assignment Example The company is reconstructing till now. It transacts majorly in chemical products. It makes chemicals majorly for all forms of industrial use. It has excellence in all of the F-Score criteria but faults on the asset turnover, which measures productivity. Seemingly, the company is gradually turning more unproductive (Anari & Kolari 2010, p.201). From the recommendations of Piotroski, the two scoring the bottom 20% of the market in the aspect of price to book value and then working from there. The model shows that suppose the expected winners were bought and expected losers shorted, the Piotroski score could be 23% in returns yearly, in a span of 20 years. According to (Brennan & Murphy 2013, p.56), the F-score screening criteria with a low P/B value would have returned 3.4%. In the previous five years, this return would yield 33.9%. The ten-year yield would be 26.7%.â€Æ' It has come to my concern that the results of the expected general election in the UK are very uncertain, and could lead to a period of extreme economic uncertainty for UK investors. An unexpected clear mandate for a strong government could lead to a resurgence in markets; whereas if no party can form a government there could be a prolonged period of instability for markets and interest rates. Our UK client discretionary portfolios have been admired by many lately for bringing remarkable income levels. It is, however, unknown if they will stay strong after the forthcoming elections. I recommend that you consider searching for other income sources widely. I urge you to consider diversification of our UK client discretionary portfolios (Vinod & Reagle 2005, p.48). The risk premiums all over the world are now becoming more expensive. There may be more volatility in the equity and bond markets. You should encourage people to diversify the risks they are running within their portfolios. I suggest that you focus more on delivering an optimal yield level instead of