Portfolio management Statistics Project Example | Topics and Well Written Essays - 2250 words

Portfolio management - Statistics Project Example In this project, the prices of the stocks provide the weights of the portfolios for all the stocks provided. The monthly returns for the stocks in the investment pool are calculated with the formula in equation 1 below: Where xp is the monthly expected return, pi is the weight of the portfolio and n is the average number of assets. The values of calculation of the expected monthly returns are presented in the table 1 presented below: The returns computed for the years of this study show the expected return increasing from left to right for all the stocks except IBM that drops at the end of the period within the time series. The stock returns values experience wide variance due to the fluctuation in portfolio weights across the period. The process of refining the investment involved ignoring the portfolio with low weights and retaining the high weight portfolio. The selection aimed at picking 3 stocks with the best returns to represent the high efficiency required in the pool decision. The high efficiency stocks were found to be IBM and MMM. The decision was made on the values based on the original currency returns. The time series for the refined investment pool carries the following stock: The major reason for reducing the number of stocks in the refined investment is that many assets have caused a wide variation of the portfolio weights and return on investment (Tobin 1958, p. 65). The analysis sets up individual each of the assets independently to as to classify them as either risky assets or risk free assets using the correlation projections. The refinement judges the investment by their return, hence; it operates with the few selected manageable stocks to reduce the portfolio size by ignoring the low return stocks. The tangent portfolio was constructed using the Matlab program. The program uses the data entries from the covariance matrix with the new weights of portfolios. The mean return values and the optimal portfolio

Management style theory Essay Example | Topics and Well Written Essays - 1250 words

Management style theory - Essay Example Management style is usually an extension of personal style. As explained by Prucell, management style is an extra dimension linked to wider business policy, and at the least, related to guiding principles which infuse management behavior in dealing with employees (Blyton & Tumbull, 256). Management style also depends upon other factors such as organizational culture, local culture, customs, and social dynamics. Based on different traits and behavioral aspects possessed by the business owners, four distinct management styles have been identified autocratic, paternalistic/consultative, democratic and laissez-faire management style (Calvert, Coles & Bailey, 69). Autocratic management style is considered as one of the oldest styles, and individuals with such style tend to keep most of the authority to themselves. These individuals take their own decisions and tend to give orders. By retaining authority, they take charge of work and are extremely quick in actions. In this management style , delegation is absent because the leaders have very little trust in their subordinates. They do not encourage staff feedback or input on any issue. Individuals with this style accomplish the tasks by using power and depend on others for completion the tasks. This kind of management style is best suitable for fast-paced businesses and even unstable businesses. In such businesses, time is a critical factor that determines the fate of the business in terms of growth, profits and sustenance. Hence, decisions and actions need to be very quick. This management style also works very well while dealing with inexperienced workers because their commitment and motivation will be very low. Besides the benefits of autocratic management, its disadvantages are that it creates bitterness and frustration among workers because they tend to feel that their involvement is not given due importance; they feel ignored. Moreover, autocratic managers tend to take all decisions by themselves, and thus limit other possibilities and even block innovation and creativity from workers. This further leads to lack of employee development, which could otherwise be helpful in organizational development too (G Kishel & P Kishel, 157). From employee perspective, autocratic management helps in creating clear goals and expectations without any ambiguities; and it creates a common understanding to a large extent. The best example of autocratic management is the military. Democratic management style encourages employee participation in most of the decision making processes. However, the leader still retains the final right of approval of decisions. Unlike autocratic management, democratic management style involves strong staff participation. Delegation of critical responsibilities and decision making are the most evident features. Sometimes, democratic management involves staff members in goal-setting activities. Staff members have the authority to control and coordinate activities. Moreover, democr atic managers focus on providing positive feedback. Yet, democratic management also follows a top-down communication method. Too much involvement from staff tends to create ambiguity or delay in decision making process (Statt, 118). Democratic style is best suited in organizations with knowledgeable and skilled workers because