Topic: - portfolio evaluation and Investment decisions

Literature reviews
1) Hans landstrom (1995) – In this article the author describes the decision – making
criteria used by informal investors and analyze the effects investment strategies have on
the propensity to accept or reject new investment proposals

Methodology:- To identify the sample of informal investors in this study , a nominated

sampling technique was used , which means that finding one informal investor typically
leads to the identification of others and a questionnaire was sent out to informal
investor.

The results show that the informal investors working with specialization strategy(within
portfolio firms within approximately the same business area or development phase)
seem to receive fewer investment proposals and seem to have a higher propensity to
accept new investment proposals than do diversified investors. This can show
investors perceived uncertainty in the evaluation process. It make investors to invest
and accept new proposals.

2) Benjamin Tobias Peylo, in this article, a frame work is proposed for a synthesis of
conventional and sustainable portfolio selection, it is based on the theories of MCDM
and was laid down conceptually and empirically using the DAX as the IOS and bench
mark.

Results show the general advantage of the use of the framework, other empirical tests
of the portfolio theory.
3) Lucy Jepchoge room, his study on the analysis of factor influencing pension fund
manager investment decisions. The main objective is to identify investment options
available to pension fund manager, like challenges, decision- making preferences
investment portfolio, past performance and legal framework were rated as less
important.

Method: - the questionnaire was administered through the drop and pick later method.
data was analyzed using spss (statistical package for social sciences )summarized using
descriptive statistics such as mean , standard deviation , frequencies , percentages .

The study found out that returns, investment risks and trends in interest rate were most
important factors affecting pension manager- investment decisions

4) Panos Louverdis and Harmen Oppewal, The Article says about the role channels and
their management in the E- business era is becoming increasingly important to customer
relationship management . traditional use of the applications portfolio approach has
been concerned with providing an appropriate basis for making investment decisions
about it application for the firms this paper argues that there is gap between the
established IS portfolio application theory and the requirements to support
management investment decisions about e-business applications therefore, the paper
proposes a channel benefits portfolio approach to inform managers channel investment
decisions
Methodology :- as first exploration into channels choice behavior , in-depth qualitative
interviews were conducted interviews with 10 university students . in second stage of
the research ,a questionnaire .
Results :- The CBP needs to be managed dynamically and updated at regular intervals to
ensure continuing alignment of the firm’s portfolio with their customer ‘ channel
portfolios in order to maximize customer relationship capital .
5) Serge Matulich , says that an investment decision model that uses objective decision
rules was tested to determine the validity of the decision rules for portfolio selection
and management . Using market information and applying its rules consistently on
samples of 400stocks , the model selected and managed twenty-five investment
portfolios for three years each . The starting date for each portfolio was different when
risk return comparison are made with market benchmark consisting of buy- hold
portfolios the model consistently performed better than the market .

6) A.Olaleye, B.TAluko and C.A. Ajayi – The purpose of this paper is to examine the factors
that have influenced the use of implicit (naı ̈ve) techniques in property portfolio
diversification evaluation in the Nigeria property market. This is necessitated by the
need to look at the ways by which the property portfolio diversification evaluation
practice in the market could be made to improve and adjust to ever changing global
trends

Methodology: - paper administered questionnaires, backed up with interviews, on 28

institutional property investors and 128 real estate practitioners in three locations
(commercial nerve centers) of the country, namely, Lagos, Abuja and Port-Harcourt
metropolitan areas. Data were analyzed with the use of frequency distribution, mean
and standard deviation measures, relative importance index and Pearson Chi-Square
test.

By examine the factors that have influenced the use of implicit (native) techniques in
property portfolio diversification evaluation Nigeria property market .this is
necessitated by the need to look at the ways by which the property portfolio
diversification evaluation practice in the market could be made to Improve and adjust to
ever changing global trends in this area.
7) Lambovska maya, Marchen Angel this paper present a new fuzzy approach for
evaluation of investment portfolio , where the approach is viewed by the authors as a
sub- phase of the management process of these portfolios . The approaches defines the
mutual and delayed effects among the significant variables of the investment portfolio
.The evaluation of the effects is described as fuzzy trapezoidal number bers and they are
aggregated by mathematical operations with incidence matrices and fuzzy functions
“exertion”.

Methodology: - the proposed fuzzy approach for portfolio evaluation, tools for portfolio
evaluation, stages of portfolio evaluation

Results: - the article covers only an example of proposed fuzzy model for evaluation of
investment portfolios, the approbation of the model with real data suggest a separate
sur vey. According to the authors its results can hardly be expressed in this publication
because of imitated volume.

8) HamelPourfatoish says the portfolio analysis using upside –potential ratio and applying
portfolio assement criteria in stock portfolio of retirement fund Investment Company of
oil industry employees. This research categorized in descriptive research classification.
On the other hand, descriptive method has been used to collect data in terms of the
purposes mentioned in the applied type of research.

Methodology: - descriptive method has been used to collect data in terms of the
purpose mentioned in the applied type of research. According to the point lied in the
fact that two fundamental risk and return exist in criteria of portfolio management
performance evaluation.
 The result of this research showed that portfolio consisted of the stock at small,
medium, and big companies have better performance than the mean of portfolio based
on upside- potential ratio.

9) Abhay Kumar Singh article say about evaluation of two different asset selection
methodologies and further examine these by forming optimal portfolios.

Methodology: - – This paper deals with the problem of portfolio formation, broadly in
two steps: asset selection and asset allocation by using the two different approaches for
the first step and then well-known mean variance portfolio optimization. In addition,
the resulting portfolios are compared using Sharpe ratio.

Results: - it says the two different methodologies, heuristic algorithm with OWA and
DEA to form an optimal portfolio of stocks from NSE of India, and compared the
portfolio thus formed from both the methods on a risk return basis using Sharpe
performance index, The optimal portfolio formed by using securities obtained from both
methods, show that the securities generated by DEA provide better return.
10) Dessislava A, Pachamanova And Frank J. Fabozzi article says the general structure of
system for
Equity portfolio analytical tools used by asset managers to identify opportunities,
determine optimal allocations, asses portfolio risk and monitor performance. traditional
quantitative equity modelling tools , such as factor model , have found new uses
alongside recent methodologies , such as smart – beta investment strategies, text
analytics , and advanced portfolio optimization routines
11) Firman Hidayai research says about portfolio simulation by the relative valuation ratio
approaches; price earnings ratio (PER) , price book value (PBV) and price earnings
growth (PEG) with active and passive strategies. The portfolios were constructed based
on the annual financial report this research provide d the portfolios constructed by low
 PER ratio, low PEG ratio, and medium PEG ratio, which consistently deliver the returns
in markets. The risk level of the constructed portfolio is not exclusively consistent with
the level of returns, since according to the theory, a high – risk portfolio will generate a
high return in anyway.

Result:- This research aimed to determine the results of portfolio simulation by relative
valuation ratio approaches; PER, PBV, and PEG within active strategy and the passive
strategy in LQ-45 index period2011- 2016.
12) Stefan En Strom by his analysis in investment decisions says that the new pension
system 4.4 million individuals to invest part of their individual pension account in mutual
funds findings show that is, individuals tend to make their own investment decisions.

Result result is consistent with the psychology literature that has previously showed that
increasing complexity in decision-making leads to procrastination. It is important
therefore that policymakers provide individuals with financial education when they give
them the responsibility of making their own investment decisions that will affect their
future pension.

13) Hao Zhong articles main aim to developing a personalized portfolio strategy for assisting
investors to target the right startups and determine the proper amount capital to fund
and used modern portfolio theory to optimize the investment strategy over the start-up
recommended by investment preferences model.

Result: - the investment strategy can yield maximized returns with suppressed potential
risks, and meanwhile meet the investment preferences of the venture capitalists. The
proposed method is evaluated using data from venture financing markets in USA, and
the results show that our method outperforms other state-of-the-art methods on
various metrics.
14) Tor Helge Aas: - Most research on innovation portfolio management has focused on
new product portfolios, whereas the management of new service portfolios has not
been researched corresponding
Methodology: - 21 in-depth interviews with employees involved with service innovation
in five large Scandinavian service firms.

Results:- the portfolio management activities and processes are carried out in parallel
with the
NSD projects, and that the most important stakeholders in the NSD portfolio
management organization are top and line managers not involved in the daily NSD
operations.
15) Monika Dzhokhar and Anil Kumar Sharma, this article is to identify and rank critical
factors influencing investment decisions of venture capitalists – Seven factors were
found to significantly influence investment decisions of venture capitalists:
entrepreneur’s characteristics, product or services, market characteristics, management
skills, financial consideration, economic environment and institutional and regulatory
environment.

Methodology:- To identify and prioritize factors affecting investment decisions of

venture capitalists, a two-phase methodology was adopted: in the first phase, critical
factors influencing venture capitalists’ investment decisions were identified using
exploratory factor analysis; the second phase entailed the use of a multi-criteria
decision-making technique – analytical hierarchal process (AHP) which involved
assigning weights to, and prioritizing the identified criteria and sub-criteria
References:-

1) pilot study on the investment decision-making behavior of informal investors in

Sweden Landstrom, Hans Journal of Small Business Management; Jul 1995; 33, 3;
ABI/INFORM Global
2) Synthesis of Modern Portfolio Theory and Sustainable Investment .Peylo, Benjamin
Tobias ,Journal of Investing; Winter 2012; 21, 4; ABI/INFORM Global
3) An Evaluation Of Factors Influencing Pension Managers' Investment Decisions In Kenya
Rona, Lucy Jepchoge the International Business & Economics Research Journal; Oct
2009; 8, 10; ABI/INFORM Global
4) Channel benefits portfolio management in the eBusiness era ,Louvieris, Panos; Oppewal,
Harmen
Qualitative Market Research; 2004; 7, 4; ABI/INFORM Global
5) EMPIRICAL EVALUATION OF OBJECTIVE INVESTMENT DECISION RULES
Matulich, Serge, California Management Review (pre-1986); Summer1976; 18, 000004;
ABI/INFORM Global
6) A. Olaleye, B.T. Aluko and C.A. Ajayi The Department of Estate Management, Obafemi
Awolowo University, Ile-Ife, Nigeria
7) Journal of competitiveness/ issue 3/2011
8) Corresponding Author, Department of Accounting, Faculty of Management and
Accounting, Islamic Azad University, Central Tehran Branch, Tehran, Iran feb 2014
9) Abhay Kumar Singh School of Accounting Finance and Economics, Edith Cowan
University, Joondalup, Australia,
10) Recent Trends in Equity Portfolio Construction Analytics Pachamanova, Dessislava A;
Fabozzi, Frank Journal of Portfolio Management; Spring 2014; 40, 3; ABI/INFORM Global
11) Firman HIDAYAT Department of Management Program, Faculty of Business and
Economics, Telkom 2017.
12) STEFAN ENGSTROM Department of Finance, Stockholm School of Economics, PO Box
6501, SE-113 83 Stockholm,2003
13) HaoZhong Ann Oper Res (2018) 263:339–360 https://doi.org/10.1007/s10479-016-
2316-z
14) Tor Helge Aas Norwegian School of Economics, Center for Service Innovation,
Helleveien 30, 5045 Bergen, Norway. E-mail: tor.helge.aas@gmail.com
15) Monika Dzhokhar and Anil Kumar Sharma Department of Management Studies, Indian
Institute of Technology Rourke, Roorkee, India 2016