Here portfolio is a collection of financial investment like stock, bonds, cash etc. Portfolio helps the company to stay in sync with the vision & mission.

  • For reducing the risk we need portfolio this is one of the most important benefits of portfolio. there are all kinds of financial sources available like fixed deposit, debt funds etc.
  • Portfolio is more important due to current scenario, here the biggest challenges in investing is the uncertainty of an investments future performance and thus the risk of potential investment losses. So here you can know about the future performance by the help of portfolio. 

to analyze a portfolio you have to need knowledge of the different types of assets and their characteristics.

Defining an asset allocation & development strategy, it is a scientific process and imperative to define what types of assets the portfolio will invest what tools will be used in portfolio analyze .it is one of the areas of investment management that enable market participants to analyze and assess performance of a portfolio (equity, bonds etc.)

Method to analyze portfolio –

  1. Holding period return method (HPRM) – here it calculate the overall return during investment holding period.

HPR = {(ending value – beginning value of investment) + dividends received}/beginning value od investment

  • Sharp ratio method (SRM) –here calculates the excess return over and risk- free return of portfolio risk.

SP= (expected return – risk free rate of return) / standard deviation

  • Alpha method (AM) – difference between the actual portfolio return and expected portfolio return.

AM = actual rate of return – expected rate of return

  • Informative ratio method (IRM)– it calculates the success of active investment manager.

Informative ratio = return of portfolio- return of benchmark /tracking error.

  • Tracking error method (TEM) -here we calculates the standard deviation of excess return with respect to the benchmark rate of return.

TE= return of portfolio – return of benchmark

here mainly four types of assets included in portfolio

  • Equities (stock)
  • Money market and cash equivalents
  • Fixed -income & debt (bonds)
  • Real estate and tangible assets 

   Operating cost of WIFI network

1)WIFI network is usually expensive and only a few business are able to bear that cost.

2)Since network is essential for work so it must be considered as a sunk investment.

3)Many companies believe that WIFI network is a huge part of their investment and about 30%-40% of their expenditure is on WIFI network and other networking facilities.

4)WIFI service providers also charge a big amount of money on commercial users like small business, MNC’s and private or government institutions

 Ways to reduce operating costs of WIFI network

  1. The cost of vendor lock in –

MSP’s and Solution providers face problems as they have to pay high cost if they need to change the networking equipment and hardware. A multi-vendor software solve such problems as it lets you work with different brands and models.

    2)On -premises systems based-

Many MSP’s need to pay upfront costs to keep the network infrastructure running. Some softwares are used to reduce upfront costs and CapEx by enabling “pay-as-you-go” subscription.

3)Total cost of ownership –

The total cost of maintaining networks should be properly estimated overtime, additional cost must also be kept in check with purchase cost as it the fundamental error of underestimating such huge cost with time.

        4)24/7 hours support and monitoring-

A MSP who deals with multiple customers will find this a costly problem. He must cut in transportation costs to serve customers to install, troubleshoot or upgrade new firmware and must make sure that he can monitor the network remotely.

Written by,

Pinky Singh