Assignment (MComm)--University of Stellenbosch, 2001. / ENGLISH ABSTRACT: Rapid development of asset pricing models, asset return prediction models,
information technologies, and the integration and globalisation of world
economic markets, require the investor to have a fundamental understanding
of the role of asset allocation (diversification) and the various strategies
available in achieving investor's risk and return objectives.
Assets are allocated across different asset classes in an attempt to optimise the
combination of investment returns and investment risk. In this way your
investment will not be subject to the volatility of anyone asset class alone. It
is important to note that the movements of one class of assets (stocks, bonds or
cash) may be somewhat offset by the non-correlated movement of a different
class of assets. The intent of asset allocation is not necessarily to increase
return as much as it is to fmd the accepted rate of return, while simultaneously
reducing risk or maintaining it at a predefined level.
This study explores the underlying theories concerning the relative importance
of asset allocation in determining portfolio performance, and the three primary
asset allocation strategies available. It also discusses relevant theory of how
the predictability of asset returns and the investment horizon of a portfolio can
have an impact on which asset allocation strategy to utilize in achieving the
necessary risk and return objectives of the investor. / AFRIKAANSE OPSOMMING: Die toenemende ontwikkeling van bate prys modelle, modelle wat die
opbrengs van bates vooruitskat, informasie tegnologie, asook die integrasie en
globalisering van internasionale ekonomiese markte, vereis dat die
investeerder 'n omvangryke kennis moet beskik oor die rol van bate allokasie
(diversifisering) en die verskillende strategië beskikbaar tot die bereiking van
investeerder risiko en opbrengs doelwitte.
Bates word geallokeer tussen verskillende bate kategorieë (aandele, effekte of
kontant) in die poging om die kombinasie tussen belegging opbrengste en
belegging risiko te optimaliseer. Sodoende word die belegging nie blootgestel
aan die onbestendigheid van slegs een bate kategorie nie. Daar moet gelet
word dat die beweging van een kategorie van bates (aandele, effekte of
kontant) teengewerk kan word deur die nie-korrelerende beweging van 'n
ander kategorie van bates. Die voorneming van bate allokasie is nie
noodwendig die toename van opbrengste nie. Daar word gestreef na die
bereiking van 'n aanvaarbare opbrengskoers, terwyl risiko verminder word of
volhou word op 'n voorafbepaalde vlak.
Hierdie studie ondersoek die onderliggende teorieë rakende die relatiewe
belangrikheid van bate allokasie om portefuelje opbrengste te kan bepaal,
asook die drie primêre bate allokasie strategieë beskikbaar. Relevante teorie
word bespreek, betreffende die vooruitskatting van bate opbrengste en die
horison van 'n portefuelje, asook die impak wat beide het op die keuse van 'n
geskikte bate allokasie strategie, om sodoende aan die nodige risiko en
opbrengs doelwitte van die investeerder te kan voldoen.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/52118 |
| Date | 04 1900 |
| Creators | Gantz, Frederick Albrecht |
| Contributors | De Villiers, J. U., Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Business Management. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Format | 91 p. |
| Rights | Stellenbosch University |
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