INVESTMENT ANALYSIS: ACTIVELY MANAGED PORTFOLIO
Unlike the passively managed portfolio, the actively managed portfolio relies on the theoretical basis that the market is not perfectly efficient. This inefficiency allows an investor to outperform the market by utilizing a certain skill or strategy. An active portfolio management usually requires short term, frequent trading, which could potentially result in large trading costs for the investor. Taking this into account, the task was to make a strategy as accurate as possible to cover the large trading cost and make profit. In building an actively managed portfolio, the selected strategy was stock picking. The reason for selection of ...