Portfolio Optimization Harvard Case Solution & Analysis

Portfolio Optimization Case Solution


The case illustrates the importance of the portfolio optimization of the relative stocks held by the particular investor and the decision of whether to invest in the future according to the historical trend data. Thus it is determined that various risk measures have been calculated in order to know the changes per period of the selected time and allow the investors to judge the period trends generated through the tool of portfolio optimization. Therefore, in order to calculate the net results, different techniques of generating the expected risk and return have been applied and taken for consideration about the future trends,which would enable the investors to hold the stock or to withdraw due to the high risk factor involved in the analysis. Sudden techniques would benefit the investors and the potential shareholders in order to take decision about whether the stock would generate healthy results or not, if so,then how much time the investor would hold the particular stock in order to receive the dividends from the given portfolio.

Selected companies under the portfolio

To analyze the net results from the given portfolio, the selected companies include Intel, Apple, and Sony. The main reason to pick these three companies is the level of moderate returns each generated in the past few years. These companies would provide easy access to determine the net outcome from the technical analysis of the portfolio. Therefore it is concluded that these selected stocks would provide different results according to the risk and return associated with each category.

Process to generate desire results

In order to generate the net outcome from the given portfolio, the process to determine different risk measures would involve under various time intervals, so it would generate different results and assess the viability or riskiness of the portfolio under the selected periods. This would also provide the investor to take decision of whether to hold the stock for the certain time period or not and if so, what would be the reason for the positive results for the investors.

Therefore, it shows that the measure is sensitive to the investors and so it would be the main tool to assess the investment opportunity or the threat. This would also analyze the company’s performance over the past few years and its expected results that would attract or eliminate the shareholder’s interest over the company’s stock performance. It has been also indicated that with each kind of tool, there are the sources to generate the desire outcomes and thus, would upgrade or maximize to show results in the future and retain the investor’s interest in order to increase the company’s growth opportunities.

The portfolio optimization tool also assesses the accuracy of the investment activity over the stock performance. It is therefore determined that key to assess the investment activity is analyzing the risk and return factor under the recent company’s performance and also to maintain the shareholder’s interest according to the accurate results of the company’s historical data.

Expected return of the portfolio

From the following results, it is expected that the return would generate different results with various time intervals and thus divert the attention of the particular investor for holding the stock, if the expected return would not generate positive outcome. So to analyze the portfolio optimization value of the stocks, the pattern of determining every 250 historical returns would be concluded and thus show price volatility that fluctuated the results over time. Therefore, the net results of each period shows different outcomes under different deviation of the prices that would enable the investor’s attention towards holding the stock..................

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