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The result was an asset allocation model that PRI licensed Brian Rom to market in 1988. Mr. Rom coined the term PMPT and began using it to market portfolio optimization and performance measurement software developed by his company. These systems were built on the PRI downside- risk algorithms.
Modern portfolio theory (MPT), or mean-variance analysis, is a mathematical framework for assembling a portfolio of assets such that the expected return is maximized for a given level of risk. It is a formalization and extension of diversification in investing, the idea that owning different kinds of financial assets is less risky than owning ...
Though not necessarily mean-variance efficient, goals-based portfolios will generate portfolios with higher probabilities of goal achievement than mean-variance portfolios. The fundamental difference between goals-based investing and modern portfolio theory (MPT) turns on the definition of "risk."
This difference between the portfolio return and the benchmark return is known as the active return. The active return is the component of a portfolio's performance that arises from the fact that the portfolio is actively managed. Different kinds of performance attribution provide different ways of explaining the active return.
A portfolio manager (PM) is a professional responsible for making investment decisions and carrying out investment activities on behalf of vested individuals or institutions. Clients invest their money into the PM's investment policy for future growth, such as a retirement fund , endowment fund , or education fund. [ 1 ]
Project portfolio management (PPM) is the centralized management of the processes, methods, and technologies used by project managers and project management offices (PMOs) to analyze and collectively manage current or proposed projects based on numerous key characteristics.
Portfolio loans often have higher interest rates and more fees. With more lenient standards can come higher interest rates, larger down payment requirements, bigger closing costs and additional fees.
Project accounting is a type of managerial accounting oriented toward the goals of project management and delivery.It involves tracking, reporting, and analyzing financial results and implications, [1] and sometimes the creation of financial reports designed to track the financial progress of projects; the information generated by this analysis is used to aid project management.