Diversification in investment portfolio in UAE stock market in five different sceneries

The dissertation has been submitted to


In partial fulfillment of the

Degree of Bachelor of Business administration

Major in Finance

December 2019


Chapter 1- 3

Introduction- 3

1.1 Background- 3

1.2 Definition of Investment 3

1.2 Investment portfolio- 4

1.3 Component of investment 4

1.3 Investment classification- 6

1.4 Concept of Investment 6

1.5 Steps for Building your investment portfolios 6

1.6 What is Risk- 7

1.7 Types of risk- 8

1.8 Return- 9

1.9 Back ground of study *- 10

1.10 Research problem- 10

1.11 Research objectives*- 11

1.12 Research questions*- 11

Significance of the study*- 11

1.14 Summary 12

Chapter 2- 12

  1. Literature review– 12

Introduction- 12

Underlying theories 13

Traditional Approach- 13

2.4 Modern Approach- 14

Overview of economy in UAE*- 15

2.6 Overview of Dubai financial market*- 16

2.7 Previous study*- 17

Summary 18

Chapter 3- 18

Research Methods 18

Introduction*- 18

Measurement of Variables*- 19

Research Framework- 19

Data Collection*- 20

Summary 20

Chapter 4- 20

Analysis 20

Introduction*- 20

Site of investment strategy. 21

Analysis and Evaluation of investment assets. 21

Structure of diversified investment portfolio. 21

Portfolio revision. 22

Analysis and Results 23

Summary*- 28

Chapter 5- 28

Analysis 28

Introduction*- 28

Conclusion*- 29

Recommendation for future research*- 29

Summary*- 30

Preferences: 30

Chapter 1


1.1 Background

Investment is one of the most important part of business world. To be an investor, you need to take a long step with right details of your growing business and be attention for every single step toward your successful journey to investment. It is not easy to build a money or wealth Whether you take a decision to take a risk in a good or bad time avoid risk.

In this study I will discuss about opportunity of diversifying investment portfolio in the stock market in United Arab Emirates which is one of the important parts of investment. I will review every detail of investment diversity the stock market. I will cover risk and return in the investment portfolio and how it benefit the investors to allocate their assets in the stock market.

1.2 Definition of Investment

The meaning of investment word defined as investing of money or capital to gain a profit as a return, interest, income or growth in value. Investment is a part of Assets in a balance sheet which showed the assets and liabilities of any company must prepare for.

1.2 Investment portfolio

Investment portfolio is one of the major things in the managing investors assets. It is a managing two or more of assets of the investors as a collection and those assets are a form of bonds, stocks, cash, cash equivalents commodities and currencies. The purpose of investing the assets is to gain a profit by investing these resources as well as maintains the capital in save of losses.

1.3 Component of investment

Assets are the Component of investment. It is necessary for the financial advisor to make sure of maxing the assets to maintained the assets in balance and support raising capital and controlling risk. Stocks are one of the well-known elements of investment portfolio used among the investors. Holding a stock of any company mean you are a shareholder of that particular company or a part of the company depends on numbers of stocks you hold. As the company share a part of its profit, the company distribute sum of its profits as a dividend. What is more, the share of the company sold when the company performance is doing well at higher price.


Bonds are the second options for investors. It rises the capital of the company, government or agency by issuing bonds to the public in this case the government or organizations borrow the money from the people and invested to their company. Since bonds comes with a maturity date, it means the principal amount needs to return w lower interest comparing to stock which has higher return.



1.3 Investment classification


Investment classified into two section. To begin with, physical investment are a real tangible assets , like ,house ,building, gold sliver, precious stones and land. Secondly , financial investment are securities assets which investors cannot be touch and divided into two section marketable investment such as shares debentures and government securities ; and non-marketable investment, like bank deposit pension fund private company shares post office and national saving certificates.


1.4 Concept of Investment


The concept of investment is you can choose your way to diversify your investment and discriminate your asset based on your taste. There are three types of investment portfolios.


Firstly, growth portfolio which is targets to increase the growth of the organization by taking a higher risk to get a higher return. Secondly income portfolio, which concentrate on the safety of fixed income than focusing on the capital gain such as, buying a stock based on the stocks dividends instead of focusing in the history of the price appreciation. Thirdly, Value portfolio is the stockholder will look for buying a lower price asset during rescission time of the economy. The investors are looking for a value deals with a potential profit with a firm in the fair market.


1.5 Steps for Building your investment portfolios


In additions, investor needs to take care of four steps in building a strong investment portfolio. First of all, he needs to find the aim of the building your investment portfolio and the reasons behind of chosen to invest in the particular company. Secondly, the investor need to decrease the investment turnover like reducing the cost of transaction in buying and selling stocks in a very short time.


Furthermore, it is better to investor to spend less price in assets that he would like to invest to get the greater possible profits. That’s because of, spending too much price in assets will increase the break-even point. Lastly, the investors have to diversify his investment and don’t rely on the specific investment because it is the key of maintaining of your investment grow and success. When the one asset of your investment decrease, the other one will have higher price and which survives and support to decline the overall risk to investors.


Risk and return are the main body of any investment and there is a relationship between the risk and return. The higher risk is the investor take the higher return he gets in the investment. However, diversification is recognized by a plan of managing the risk of investment portfolio which decline the risk for the investors and avoid loses. Risk together with return expressed as a percentage.



1.6 What is Risk


Risk is one of the main traits of an investment where the investors loss value amount of money in an investment that he chooses to invest in. Risk response to some Elements for example, the long period of investment maturity; the higher risk shareholder will take. Besides, Fix deposit, debt instrument and government bonds or securities form corporate and semi government are lower in risk due to secured fix interest payable.


However, the risk in equity, like preferences shares is high because of unsafely nature, unpredictability of return and based on ownership characters. Returns in case of ownership capital is more than of debt capital. For example, if you own a common or preferred stocks you will have a her return comparing to bonds issued from cooperate or government. The are many types of risks in the financial would that separate risk depending on internal and external factors.


1.7 Types of risk


Systemic risk is a change in the returns on securities that follows according to macroeconomics factors such as, political, social or economic factors which consequences on the entire businesses or market. Besides, systematic risk can be a disadvantage of many reasons that effects the world and cannot be controlled like natural disaster, international economic factors and changes in nation’s economy. It is divided into three categories:


  • Interest rate Risk

This risk causes by changes in the interests’ rate from time to time and effects interest -bearing securities like bonds and debentures.


  • Inflation Risk

Inflation risk is a risk effect the purchasing power of the people based on the increasing or decreasing cost of products or serveries demand in addition to supply.  It called purchasing power risk.


  • Market Risk

This risk impacts the rise of fall in prices of the shares over the time with other shares in the market.


Unsystematic risk is a variation in returns of the company due to micro-economic factors are characterized as unsystematic. This risk is occurred and effects inside the company or industry and the factors can be eliminated by taking a necessary action to controls the factors like undesirable products, labor strikes etc. There are two types of unsystematic risk.


  • Financial Risk

Financial risk is connect to capital arrangement of the company. It indicates changeability of the equity due to the debt capital which generate fixed payment in the form of interest. Changes in debt capital of the in the capital called earning per share.


  • Business Risk

This risk is known as a “leverage risk “once the company do any amendment in the capital structures the expression of the risk called the debt- equity ratio.


1.8 Return


Return is one of the most significant face of investment which is indicates rate of return from the investment. It is impacting the arrangement of the business earning and shareholders are constantly selecting high rate of return for his investment.



 1.9 Back ground of study


In this study I am planning to invest in financial market in United Arab Emirates. the aims of the study are to recognize the different types of stocks that’s I have chosen to invest. I will discuss about each company stock and the history of the stocks in Dubai financial market. I have chosen to invest in five stocks in this market and my aims is to study the impact of investment in different stocks. Any investment has a risk and return and I will calculate the risk and return of each stock and average risk or standard deviations of each stocks .he next steps will find risk as well as return of the portfolio.


In this part there will be average risk and the average return of the portfolio which will move me to the next step. In the next steps I will explain the weight matrix and multiplication of all stocks as well as I will add risk matrix and multiplication of risk. Correlation matrix multiplication is a step of calculating the relationship between the stocks and the final matrix multiplication will give me a summation of the matrix multiplication where I will find the variance and standard price square route. Finally, I will calculate the sharp ratio of each seniors differently based on choose.


1.10 Research problem


This studying will focus on investment in the financial market in UAE. My aims form the investment in the financial market is to diversify in potential stocks and find the optimal investment portfolio.


1.11 Research objectives


The purposes of the research are to show how diversification of portfolio investment in UAE stock market in five different sensorics is a good opportunity to investors to allocates his money in the best options. Evaluated the five portfolio and find the best investment portfolio.


1.12 Research question

  1. Is the diversifying in investment portfolio benefit the investors?
  2. Are Estimating investment portfolio in different sceneries helpful for investors?
  3. What is the optimal portfolio in the diversified portfolio investment?

1.13 Significance of the study

This study an important for investors financial manager and individuals  to know the best way to deals with his investment in the financial market to take a right financial decisions and to avoid loses of the principle amount. Investors are always looking for high return and to get a higher return you must have it equally with higher risk. It is essential to find the optimal portfolio in the management portfolio keep  trust between you and your customers who are looking for a ideal investment of money.


Investing is one of the most important section of enterprise world. Taking  proper details in managing the assets portfolio of will guide the investor to develop enterprise and be attention for  every single step towards your profitable journey to investment. It is not easy to construct a cash or wealth Whether you take a choice to take a risk in a true or awful time avoid risk.

The discuss will be concerning about possibility of differentiating investment portfolio in the stock market in United Arab Emirates which is one of the essential components of investment. I will evaluation every element of funding diversity the inventory market. I will cowl threat and return in the funding portfolio and how it gain the traders to allocate their belongings in the stock market.

Chapter 2

2.1 Literature review


Portfolio management is one of the investment plans which lead to financial planner to minimize risk and maximize returns. It is very important to allocate money of investors in the right time and market. Theories is a guidance of investors and diversification in investment portfolio will allow the investors to maximize  his wealth.

2.2 Underlying theories

There are many theories of investment portfolio that investors can fund the accurate way for dealing with their money or assets. The theory is used to reach the objective of the investment in the business to produce a management of portfolio with high influence to investors. There are three theories listed in the traditional approach and one in modern theory.

 2.3 Traditional Approach

Dow Jones Theory

Charles Dow, the editor of Wall Street Journal, USA, create the theory through the series of policy. Dow express the hypothesis where the stocks market is influence by three separate repeated trends that control its direction which is not change disorganized. These movement are primary movement, secondary movement and minor movement

Random Walk theory

According to Dow Theory, forecasts can be built about the future behavior of stock exchange prices by a careful study and evaluation of the price movements. Conflicting to this belief, as per the random walk theory, the performance of stock exchange prices is almost variable and there is no relation between the current and future stock costs. Any changes happened in the economy or industry will affect the price of a stock in a form of increase of decrease depends on that situation. These changes in the price will reflect in the stock market

Formula theory

The idea of formula plan is identified to accomplish reduce cost and get higher return. Investors has the advantages from variation in the market prices. When the prices of the stock market go up, its required to stakeholders to sell their stocks, In the other hand, When the prices of the stock market went down stakeholders must buy the stocks from the market.

2.4 Modern Approach

Modern portfolio theory use as an investment tools to take a right decision om the right time and it  has two types of theories passive and active portfolio theories. Passive portfolio theory depends on the diversification in your investment as the popular investment quotes “don’t put all your eggs in one basket” . This theory advice the investors to buy the stocks form the same industry. Additionally, the theory mixing the goals on investors and his action behaviors with financial situation market. It is very important to investors to use the market or data historical data of the stock price to predict the future investment performance.

Active portfolio theory divided the investors into three section; patient aggressive and active or conservative. Patient who tends to invest in stable companies that pay to stakeholders dividends yearly , after maturity time or period of time. Those people can be describe as a risky fears as individuals avoiding loses of money and their goals is to have a future secured dividend . Aggressive is the second types of active portfolio. These people are risky takers and they buy stocks to get a higher return as stocks due to volatility of stocks and  has a high risk and turnover   in term of securities assets.

2.5 Overview of economy in UAE

Strong economy of any country can rise the county to the top or down based on the strategies of country and its future vision . In 1950s, UAE was in a part of the world where a simple trading was done by a people who lived in that days doing their own nomadic farming , fishing, palm cultivations , pearling and seafaring. Once UAE announce discovery of the oil the whole economy of UAE was changed and influenced by main areas ,For instance real states, Wholesale and retail trading, manufacturing, construction and business services. According to the economic report 2018 announced by the UAEs ministry of Economy anticipated GDP for 2017 increased by 0.8% at amount of AED 1422.2 billion comparing it in 2016 at amount of 1411.1

The UAE make the economy of the country to rank in to the best level over the 45 years. According to the World Bank report which measures the performance of 190 countries in “ease doing business”, the UAE was ranked first in the Arab world and 11th globally. It was ranked 1st globally in getting electricity, 2nd in paying tax, 5th in dealing with construction permits, 7th in registering properties, and 9th in enforcing contracts.

UAE build their strong economy due to the good vision of the rulers of the UAE. Nowadays, United Arab Emirates enjoys location a tactical location between Asia Europe and Africa. Many chinses businesses want to Dubai as  Middle of trading in Africa. Indian traders consume Emirates airport’s to cross the world.

Maintaining a strong financial assets leads the other countries to build a relationship looking for a growth of their economy exchange trading in many way.  According to a report in Khaleej times, International Monetary Fund forecasts that the gross official reserves of the UAE would grow from USD 76.8 billion in 2015 to USD 118.4 billion in 2020. The current account surplus would grow from USD 17.6 billion in 2015 to USD 33.4 billion by 2020.

UAE government focuses in the diversification on the economy level and do not depends on oil to increase the economy. The government of the UAE is concentrating in economic, touristic and commercial capital for more than 2 million people.

The vision of the UAE in 2021 is to maintain and create a sustainable and diversified economy by adopting economic models and capitalizing on global economic corporations to assurance long-term wealth for current and future generations of Emiratis.

2.6 Overview of Dubai financial market

Dubai Financial Market is one of the most important stock market. It has been established and owned by Dubai government  in 26 of march 2000 and its located in Dubai, United Arab Emirates. In November 2006, by issuing IPO to public the market converted to joint-stock company .This steps led to 20% of shares to public and 80 % were contributed by Borse Dubai.

DFM is one of the three major market in the UAE regulated by the Securities and commodities authority (SCA) which is designed to protect investors, brokers and listed companies by setting rules and standards to exchange stocks . DFM , Abu Dhabi securities Exchange (ADX) and NADSAQ Dubai was arranged to trade stocks international.

In 2014, there was around 76 companies listed on DFM. There was a significant increase in the volume as well as price of the shares traded in many companies in DFM during 2004 and 2005. Due to the global crises in 2008 DFM faced declined in the Net profit from the period of 2007 till 2011. The recorded of the dropped was recorded year after year. The management of the DFM planned to pull the market from the dilemma and decided to save the market. DFM was made  success  story to return the market and ern profit and in 2013 the growth rated raised to 166.3 %.

2.7 Previous study

Mr Markowitz managed a modern portfolio theory which is known as a selective model. Markowitz selective model dislike the risk and all investors are investing in for a long time equally. The investors are seeking for standard deviation or risk as a measure of investment decisions.

In line with Edwin and Martins, in 1997, the theory of modern portfolio is assisting an investor to guess, organize and control the varieties amount of the expected risk and return which is also called Portfolio Management theory.

Basic to the portfolio theory are its measurement of the relation between risk and return, therefore the assumption that investors should be rewarded for forward risk. Portfolio theory departs from ancient security analysis in shifting stress from analyzing the characteristics of individual investments to deciding the applied mathematics relationships among the individual securities that comprise the portfolio.


Portfolio the executives is one of the venture plans which lead to budgetary organizer to limit hazard and augment returns. It is imperative to dispense cash of speculators in the correct time and market. Hypotheses is a direction of speculators and enhancement in venture portfolio will enable the financial specialists to amplify his riches.

Chapter 3


Research Methods


In investing portfolio management , you need to take care of the risk and return of the stocks. The first step of arranging the diversified portfolio is to choose the stocks form the stock markets by going to historical data to predicts the future income and hazard of your portfolio. Risk and return for all stocks in the market are changing and moved up or down based on the company performance and sometimes depends on general situation in the market.

 Measurement of Variables

The first steps in investment is to find the weight of each stocks that you choose to allocate your money in.  by taking the last price of stocks you decide to invest on and multiplied by number of shares you selected to purchase that is give you’re the price each share you bought it from the market. Price of specific share divided by total price of all share will give you a weight of share in the portfolio . this weight will be used to know the expected rate of return and risk.

Measuring risk and return of the historical data is the main point to find out the expected rate of return and return. Investors can forecast the risk and return after taking historical date of any company from financial stock market that he is looking to invest on. after finding the data, investors need to calculate average return based on the closing price for certain time.  Average return is equal to total return divided by total number of days. Similarly to risk, average return will be calculated in the same way by taking total return and divided into numbers of days. After finding average risk and average return investors, you need to find return and risk of the portfolio for all assets.

Research Framework

Investment is a part of every investors. Investment is a part of every company in the world. It take time to make a decision in your life that may impact you in the future. Taking a decisions investment , will also effect the performance of the organizations in the future. The effect can extend in people life in a way to make them to change their life to positive or negative.

Data Collection

The secondary data was gathered from Dubai financial market. It is a historical record of stocks for the last three month in 2019. The quantitative data need to be measure with a Risk and return to find the variance and standard deviation.


Chance of differentiating venture portfolio will protect securities exchange in United Arab Emirates which is one of the significant pieces of speculation. Enterprise decent variety the financial exchange will reduce hazard and return in the venture portfolio and its advantage the speculators to distribute their benefits in the securities exchange.

Chapter 4



Investment management process is finding a methods to manage investors funds. Fund manager need to take control risk and income money by taking a good decisions. There are five process to manage investment and analysis investment portfolio.

Site of investment strategy.

The first step of investing is to find your target of investment. Investors need to have a plan of clear policy that shows possible risk and return and investing period of time for investors in investment policy.  The policy require to mention a potential kinds of assets in investment portfolio

Analysis and Evaluation of investment assets.

After putting the plan of the investment in financial market you need to evaluate the price of each stock in term of risk and return based on the historical data to find optimal portfolio. There are two method to analysis investment portfolio  technical and fundament analysis.

Technical analysis is trying to predict future price of particular financial assets operated on the market by looking at the old trends of the previous prices according to guess that these movements or repetitions may repeat themselves in the future. On the other hand, fundamental analysis is estimate of real value of financial assets. This analysis is  relating a real value of financial assets to market value and understand whether this value is higher or lower than the market price. This steps helps the investors to decide the right assets to allocates his money in  investment portfolio.

Structure of diversified investment portfolio.

Investors must set a prior time to invest in the market and his selections to differentiated in financial assets that he choose to invest. There are two types of  procedures in diversification of investment portfolio. Random techniques when unplanned assets offered in investment portfolio. Besides, objective diversification  when financial assets are nominated in investment  portfolio with a clear objectives , evaluate and analysis financial assets with suitable techniques.


  Portfolio revision.

It is better for investors to review their financial assets repeatedly and reform a new portfolio by selling the weak assets priced and buy others assets with attractive price as fluctuation of assets price over a period of time and changing in rules and security regulations.

Measurement and evaluation of portfolio performance.

For assessment of portfolio execution, suitable proportions of return and hazard and benchmarks are required. A benchmark is the exhibition of foreordained arrangement of benefits, acquired for correlation purposes. The benchmark might be a prevalent record of proper resources, stock file and bond list. The benchmarks are generally utilized by institutional financial specialists assessing the exhibition of their portfolios. It is critical to bring up that speculation the executives procedure is a proceeding with process impacted by changes in venture condition and changes in financial specialist’s attitudes too. Market globalization offers financial specialists new conceivable outcomes, and yet speculation the executives turns out to be increasingly more jumbled with developing vulnerability.

Analysis and Results

In this study, investment plan was to put 300 share in five scenarios to see the best situation where the risk is lower than return as the best situation to invested for.

According to potential investment portfolio in five sceneries, I have collected a historical data for verity of stocks from Dubai financial market for three month from 19/JAN/2019 to 17/SEP/2019. Financial assets of the stocks was 2 stocks form banking industries which are Dubai Islamic bank and Emirates NBD bank. The third important stocks was from telecom companies and the forth stocks was from real estate’s industries EmaarMalls stocks and the last industries is service industries related to Aramex company.


Company Ticker Last price (end of 2019), AED Number of shares Position $ Share in portfolio
EMIRATESNBD ENBD 13.40 50 670 0.38890179
DU TELECOM DU 5.62 70 393.4 0.22834920
ARAMEX ARAMEX 4.08 80 326.4 0.18945902
EMAARMALLS EM 1.93 60 115.8 0.06721616
DUBAI ISLAMIC BANK DIB 5.43 40 217.2 0.12607383
Total     300 1722.8  


Weight 0.38890179 0.2283492 0.18945902 0.06721616 0.12607383
Risk (STD) 0.81484686 0.21391881 0.08402186 0.07273013 0.08919954
Return 10.795082 4.43590164 3.21262295 0.97262295 4.19032787
Return On Portfolio 6.413488336
Risk On Portfolio 1.27838462


Every number of share was distributed differently. In the first scenario, the number of share was allocated as random without focusing in the price of shares. I noticed that return of the investment portfolio in the first situation has a 6.41% meanwhile, the risk of the portfolio was 1.27% .

Company Ticker Last price (end of 2019), AED Number of shares Position $ Share in portfolio
EMIRATESNBD ENBD 13.40 60 804 0.43992121
DU TELECOM DU 5.62 60 337.2 0.18450427
ARAMEX ARAMEX 4.08 60 244.8 0.13394616
EMAARMALLS EM 1.93 60 115.8 0.06336179
DUBAI ISLAMIC BANK DIB 5.43 60 325.8 0.17826658
Total     300 1827.6  


Weight 0.43992121 0.18450427 0.13394616 0.06336179 0.17826658
Risk (STD) 0.81484686 0.21391881 0.08402186 0.07273013 0.08919954
Return 10.795082 4.43590164 3.21262295 0.97262295 4.19032787
Return On Portfolio 6.806369
Risk On Portfolio 0.639544993


In the second scenario in decided to changes distribution of share number to be equally. This scenario is matching with the concept Markowitz selective model in the modern approach that the investors investing equally long time. h divided the share equally to value the difference if the numbers of share. The results was the return in this portfolio is 6.80% and risk was at 0.63%. As a result, portfolio in scenario 2 give us a best return with lowest risk between five scenario and this is the optimal portfolio.



Company Ticker Last price (end of 2019), AED Number of shares Position $ Share in portfolio
EMIRATESNBD ENBD 13.40 70 938.00 0.63115171
DU TELECOM DU 5.62 40 224.80 0.15126109
ARAMEX ARAMEX 4.08 60 244.80 0.16471848
EMAARMALLS EM 1.93 90 173.70 0.11687745
DUBAI ISLAMIC BANK DIB 5.43 40 217.20 0.14614728
Total     300 1486.172  


Weight 0.63115171 0.15126109 0.16471848 0.11687745 0.14614728
Risk (STD) 0.81484686 0.21391881 0.08402186 0.07273013 0.08919954
Return 10.795082 4.43590164 3.21262295 0.97262295 4.19032787
Return On Portfolio 2.538645
Risk On Portfolio 1.544527456


In the third scenario, I give the best numbers of share to the higher value share price which is Emirates END at price 13.40. the return on portfolio was the lowest in the all the portfolio at rate 2.53% and risk was at 1.54% . Lower return may not attract most of the investors and the diversification of investment portfolio is not to look at the higher price in the market because this kind of mistakes may have bad impact and negative result in investment.



Company Ticker Last price (end of 2019), AED Number of shares Position $ Share in portfolio
EMIRATESNBD ENBD 13.40 23 308.2 0.195997
DU TELECOM DU 5.62 89 500.18 0.318086
ARAMEX ARAMEX 4.08 45 183.6 0.116759
EMAARMALLS EM 1.93 56 108.08 0.068733
DUBAI ISLAMIC BANK DIB 5.43 87 472.41 0.300425
Total     300 1572.47  


Weight 0.19599738 0.31808556 0.11675898 0.06873263 0.30042545
Risk (Std) 0.81484686 0.21391881 0.08402186 0.07273013 0.08919954
Return 10.795082 4.43590164 3.21262295 0.97262295 4.19032787
Return On Portfolio 5.22763868
Risk On Portfolio 1.114160867


In the fourth scenario, I tried to give my best numbers of shares to a popular company with a good reputations. The return on this portfolio was 5.22% and risk rate was at 1.11% which is acceptable to invest in this


Company Ticker Last price (end of 2019), AED Number of shares Position $ Share in portfolio
EMIRATESNBD ENBD 13.40 70 938 0.49837947
DU TELECOM DU 5.62 55 309.1 0.16423144
ARAMEX ARAMEX 4.08 65 265.2 0.14090643
EMAARMALLS EM 1.93 65 125.45 0.06665427
DUBAI ISLAMIC BANK DIB 5.43 45 244.35 0.12982838
Total     300 1882.1  


Weight 0.49837947 0.16423144 0.14090643 0.06665427 0.12982838
Risk (Std) 0.80814019 0.21215813 0.08333031 0.07213152 0.08846537
Return 10.795082 4.43590164 3.21262295 0.97262295 4.19032787
Return On Portfolio 7.170093965
Risk On Portfolio 2.348159674


I observed risk in scenario 5 was highest return on portfolio at 7.17% ,but risk in the same portfolio is also highest in 2.34%.  In the scenario 5 the higher return trends to high risk.


Return On portfolio Risk On portfolio
Scenario 1 6.413488336 1.27838462
Scenario 2 6.806369 0.639544993
Scenario 3 2.538645 1.544527456
Scenario 4 5.22763868 1.114160867
Scenario 5 7.170093965 2.348159674


According to all situations the higher return in the portfolio number 5 ,but portfolio number 3 was recorded the lowest return in the portfolio. Investors look at the market from prospective of long term investment.


Investment management process is finding a methods to manage investors funds. Fund manager need to take control risk and income money by taking a good decisions. There are five process to manage investment and analysis investment portfolio.

Chapter 5



Speculation is one of the most significant piece of business world. To be a speculator, you have to make a long stride with right subtleties of your developing business and be consideration for each and every progression toward your effective voyage to venture. It is difficult to assemble a cash or riches Whether you take a choice to go out on a limb in a fortunate or unfortunate time stay away from chance.

Portfolio the administrators is one of the endeavor plans which lead to budgetary coordinator to confine risk and enlarge returns. It is basic to apportion money theorists in the right time and market. Theories is a heading of examiners and upgrade in adventure portfolio will empower the money related authorities to enhance his wealth.


At the end, investment play an important role in moving the business. Investment helps individuals and entities to take a good decisions in terms of allocating assets in the right way to maximize profit and avoid loses or take a lowest risk. It is difficult to assemble a cash or riches Whether you take a choice to go for broke in a positive or negative time stay away from hazard.

Recommendation for future research

Diversification of investment portfolio is major thing and leads to get the maximum return and avoid the risk. My recommendation to investors in investment is to advice the financial  planner to guide you and evaluation the market based on the market situations. Besides, companies need to put their future plan to  create a basket of investment and not rely on regular income of the investment only.


Building investment portfolio required a piece of patient to get a future result. It is not easy to create your own wealth but maintaining growth income is more important. investment is one of the effective role in the business world


JNU, Jaipur, First Edition 2014 , Investment Analysis and Portfolio Management http://jnujprdistance.com/assets/lms/LMS%20JNU/MBA/MBA%20-%20Banking%20and%20Finance/Sem%20IV/Investment%20Analysis%20and%20Portfolio%20Management/Investment%20Analysis%20and%20Portfolio%20Management.pdf

Erika Spuchľakova *, Katarina Frajtova Michalikova , Maria Misankova , Risk of the Collective Investment and Investment Portfolio , Procedia Economics and Finance 26 (2015) 167 – 173 010 26 Zilina, SlovakiacUniversity of Zilina, Faculty of Operation and Economics of Transport and Communications, Department of Economics, Univerzitna 8215/1, 010 26 Zilina, Slovakia https://www.sciencedirect.com/science/article/pii/S2212567115009107

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CFI Education Inc. 2015 to 2019


CFI Education Inc. 2015 to 2019






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