Open Access Article

Title: Portfolios Theories and the Management of Customized Domestic Equity Funds: Pedagogy

Authors: Thomas A. Rhee

Addresses: Author address listing can be found in the "About the Authors" section at the end of the article.

Abstract: Such inputs as securities expected return and variance-covariance matrix in constructing portfolios are forward-looking quantities, which determine ex-ante Efficient Portfolio Frontier. Many hedge funds and separate equity accounts managers use unique pricing models of their own. They in turn decide on the value of these inputs, which in the end influences the portfolios' performance. This paper offers pedagogy as to how portfolios can be customized in varied investment environments and under differing clients' requirements. It uses some of the most popular interest rate and other equilibrium asset pricing models.

Keywords: Portfolio management; equity funds; efficient portfolio frontier; asset pricing models; customized investment strategies.

DOI: 10.1504/JBM.2006.141138

Journal of Business and Management, 2006 Vol.12 No.1, pp.25 - 43

Published online: 05 Sep 2024 *