Dybamic Asset Allocation

Dynamic Asset Allocation Strategy

[Type the company name]

[Type the author name]

Dynamic Asset Allocation

Submitted to:

Dr. Mahmood Osman Imam

Professor

Department Of Finance

University of Dhaka

Submitted by:

Gazi Afsana

Roll-15-627(MBA)

15-252(BBA)

BBA 15th Batch,

Department of Finance

Date of Submission: 8th February, 2014

Letter of Transmittal

February 8, 2014

Dr Mahmood Osman Imam

Professor

Department of Finance

University of Dhaka

Subject: Submission of term paper.

Sir,

With due respect, I, having completed the term paper on “Dynamic Asset Allocation Strategy ”, would like to submit to you as per requirement of the running semester.

I thank you sir, for the assignment which have enriched our knowledge about this topic.

Sincerely,

Gazi Afsana

Roll-15-627(MBA)

15-252(BBA)

Department of Finance

University of Dhaka

Table of Contents

Topic | Page No. |

Executive summery | |

Management of Equity risk | |

Definition of 'Dynamic Asset Allocation' | |

Dynamic Asset Allocation Strategy | |

Delta Measurement | |

Industry Analysis | |

Company Analysis | |

100% equity investment | |

50% equity 50% risk free asset | |

Dynamic Portfolio Construction | |

Findings | |

EXECUTIVE SUMMARY

The asset allocation problem is frequently addressed dynamically. The dynamic asset allocation shows how the optimal asset allocation depends on the investment horizon, wealth, and the investor’s risk preference. It is a major investment decision for individual and institutional investors alike is to choose between different asset classes, i.e., equity investments and interest- bearing investments. The asset allocation decision determines the ultimate risk and return of a portfolio. Here I try to justify dynamic asset allocation leads to superior results compared to static or myopic techniques

Dynamic asset allocation may involve several portfolio adjustments over...