Optimization of the Financial Instruments Portfolio

Abstract

The management of financial instruments portfolio is a complex activity that is based on a series of scientific models through which it is possible to assess the financial performance of securities markets, but also the risks to which investors expose themselves.Securities portfolio management aims to maximize profitability risk, relationship to allow institutional investors and individual investment behavior in close connection with the individual's attitude towards risk. The models dedicated to management of portfolio securities shall establish the prerequisites of an analysis of the investment behavior using only the financial arguments. We have to analize in a comparative way the characteristics of the models dedicated to managing securities portfolio to see if they are complete.

Keywords

• risk premium
• capital market line (CML)
• multi-factor model (APT)
• passive and active strategy for asset portfolio management
• efficiency of financial markets
• top-down model
• bottom-up model.