• citations in SCIndeks: [1]
  • citations in CrossRef:0
  • citations in Google Scholar:[]
  • visits in previous 30 days:24
  • full-text downloads in 30 days:14


article: 2 from 4  
Back back to result list
2015, vol. 12, iss. 1, pp. 31-46
Investment risk management by applying contemporary modern portfolio theory
aUniversity of Kragujevac, Faculty of Economy
bUniversity of Kragujevac, Faculty of Hotel Management and Tourism, Vrnjačka Banja,
Preclinical investigation of bioactive substances (MESTD - 41010)

Keywords: investment risk; portfolio theory; diversification; global financial flows
Investment risk is the principal threat to the assets side of the balance sheets of financial institutions. It is evident that investors who concentrate their wealth on one type of securities can rarely be found. Instead, they tend to invest diversified portfolio of securities. This reduces the degree of risk of the expected return, which depends both on the absolute risk of each investment in the portfolio, and the relationship that exists between individual investments within the portfolio. The paper analyzes the investment risk management by using modern portfolio theory in both national and global financial f lows. At the same time, the paper considers the risk management models that ensures efficient portfolio diversification, aiming at investment risk reduction. It is pointed out that the investment risk management in modern financial f lows is a complex process, and that the development of financial theory goes towards improving, soft risk management method.
Back, K.E. (2010) Asset Pricing and Portfolio Choice. New York: Oxford university press
Blake, D. (2000) Financial markets analysis. Chichester: Wiley
Chapman, R.J. (2006) Simple tools and techniques for enterprise risk management. Chichester: Wiley
Fabozzi, F.J., Modigliani, F. (1996) Capital markets: Institutions and instruments. Englewood Cliffs, NJ: Prentice-Hall
Jakšić, M. (2012) Upravljanje rizicima portfolija hartija od vrednosti. Ekonomski horizonti, vol. 14, br. 3, str. 151-164
Jakšić, M. (2011) Finansijsko tržište - instrumenti i institucije. Kragujevac: Ekonomski fakultet
Latković, M. (2002) Upravljanje rizicima - identifikacija, mjerenje i kontrola. Financijska teorija i praksa, br. 26, 463-477
Marinković, S. (2012) Finansijska tržišta. Niš: Ekonomski fakultet
McInish, H.T. (2000) Capital markets: A global perspective. Massachusetts: Blackwell
Pavlović, V., Muminović, S. (2005) Izazovi CAPM modela. Finansije, vol. 60, br. 1-6, str. 126-144
Reilly, F.K., Brown, K.C. (2002) Investment Analysis and Portfolio Management. Harcourt College publishers
Rejda, G.E. (2011) Principles of Risk Management and Insurance. Boston: Massachusetts pearson Education, Inc
Rubinstein, M. (2002) Markowitz's Portfolio Selections: A fi ; y - year retrospective. Journal of Finance, 57(3): 1041-1045
Sharpe, W.F., Gordon, A.J., Bailey, J.W. (1995) Investments. New Jersey: Prentice-Hall Inc
Sigal, S. (2006) Value-based enterprise risk management: The key to unlocking ERM potential. Corporate Finance Review, 10(4), 16-26
Šoškić, D.B. (2000) Hartije od vrednosti - upravljanje portfoliom i investicioni fondovi. Beograd: Ekonomski fakultet


article language: Serbian
document type: Original Scientific Paper
DOI: 10.5937/MegRev1501031J
published in SCIndeks: 18/01/2016

Related records