Portfolio Risk Management and Capital asset Pricing Model : Case: The comparison among the portfolio in the same and different regions

Abstract

The objective of this thesis is to figure out the profitability in stock investment through portfolio risk management and the practical application of Capital Asset Pricing Model (CAPM) in specific empirical study. In this paper, readers will have the overall information about different aspects of portfolio risk management, the role of diversification in investment, general knowledge about Capital Asset Pricing Model as well as its contribution in investment evaluation. Additionally, the study will review some basic academic knowledge, principles and related theories in order to support deep comprehension about the thesis’s content. The research methods used are quantitative research along with deductive approach. Literally, the primary and secondary sources will be utilized to explain the whole content of this paper. In logical and scientific methods, the needed data is collected from Bloomberg terminal and Excel application. Based on the short-term analysis of chosen portfolios in the period of 28 days, the practice of theory in current market will be evaluated. In addition, the empirical sample mentioned will be a good source to be referenced. The outcomes of this research are reliable and valid, which have significant meaning for further financial study in the future. Last but not least, the author will emphasize some significant improvement suggestions that are highly assessed and criticized by prestigious professors at the end of the paper.