A New Approach in Rentability and Capital Risk Management

Abstract

The paper deals with an analytical manner with the financial analysis of the decisions of investments, concentrating on the analysis of the profitableness and the risk of financial titles as part of a portfolio on the Romanian market of capital. First part deals with problems of modern theories of portfolio as a follow up of establishing the complex relationship of risk in the previous chapter and establishes that the analysis of the risk of a portfolio can only be made in close connection to the prognosis of profitability. Although the studying of these phenomena has been realised scientifically ever since the beginning of the 20th century, there can be established as components of the modern theory of portfolio a series of models of analysis and estimating of the relationship central to the management of the portfolio, namely the correlation profitability – risk. Second part proposes of a model for the financial analysis of risk and profitability starting from the necessity of establishing an influence of cultural, investment, educational factors upon the transactions made on the market and upon the course of stock, proposing a new measure for the quantification of the evolution of the individual profitability and the profitability of the market under the form of potential profitability.

Keywords

• asymmetry
• divergence
• future value
• volatility
• moral hazard