Portfolio management Research Paper Example | Topics and Well Written Essays - 1500 words

Portfolio focus - Research Paper ExampleThis means that the investors incline towards investments which offer guaranteed returns at low-spirited risk. However, the ability to take higher calculated risk could produce higher returns for the investor. However, the returns are not guaranteed. For this reason, portfolio trouble attains significance (MAHAJAN, 2009). Portfolio management helps the investor to decide on the weight-age to be allocated to investments in a portfolio of stocks which would not only transmute the risk but at the same time would maximise the returns on investment. Considering the sparing of Qatar, a portfolio management has been carried out taking two companies in the Qatar market into consideration. Qatar Economy and Financial sector Growth of Qatari Market Qatar is the richest Muslim country in the world. Qatar is the leading producer of hydrocarbon and vegetable oil which makes the economy of Qatar largely symbiotic on oil and gas. The production of pet roleum and hydrocarbon in Qatar contributes to more than 70% of the governments tax revenue earnings. Also the amount of production of petroleum forms 60% of the countrys gross domestic product. Nearly 85% of the income realize by Qatar from its exports is done by the country through the export of its petroleum. Qatar maintains a huge reserve of hydrocarbon and petroleum oil. ... Due to the rising global demand of oil in the nineties, the GDP of Qatar grew by a mark figure of 94%. Qatars economy has been able to achieve an incredible growth rate of GDP to 19.9% in 2011. However, signs of slow down in Qatars economy were apparent as it was predicted to grow by 9.8% in 2012 and by 4.5% in 2013. The Qatari economy has seen its GDP grow triply to $173.3 billion from 2005 to 2011 which was reported by the (IMF) International Monetary Fund. Qatar is also looking to produce offshore petroleum and is aiming at diversification of its economy by looking at long term prospects of growth. In the coming years, Qatars economy would be slowing down due to the reduction in hydrocarbon reserves. The growth in economy in prospective would be supported by the non-hydrocarbon areas like petrochemical, construction and manufacturing sectors. Banking, insurance and financial services are familiar in the financial industry of Qatar. The trading of stocks takes place at the Qatar Exchange and flow of information to the market is used by the investors which reflects the related public events of the past, the instantaneous updates of the present market and also contains a vaticination of the related events of future. Comparison surrounded by two companies in Qatar stock market QGMD and GWCS In order to rent between the investment options as a part of portfolio management involving two companies, a comparison between two stocks in the Qatar market has been given below. In order to maximize the return to the investor, the portfolio management provides a direction towards decision making in opting one investment over another or find the weight-age which should be assigned to the investment options in order to