Factor Profile

• The factor profile shows an exposure to

investment factors that are broadly accepted in
the investment industry as being drivers of risk
and return.
eg; in equity portfolio the investors using this can
visualise, diversify the portfolios, manage the
expectations and anticipate the outcomes.
The factors considered may be yield, liquidity,
size, momentum
 Ranking Plan
• Benefit measurements
• Constrained optimisation

A problem which seeks to maximise or minimise a linear function (say of

two variables x and y) subject to certain constraints as determined by a set
of linear inequalities is called an optimisation problem

Constrained optimisation is to maximise or minimize a function f(x) by

varying x given certain constraints on X
-Linear Programming method of project selection
-Integer programming method of project selection
-Dynamic programming method of project selection
-Multiple objective method of project selection
Investment=Rs.50000
Storage space= 60
Cost of the table=Rs.2500
Cost of the chair =Rs.500
Profit on the table =Rs.250
Profit on the chair= Rs.75
Objective Function:
Z=250x +75Y
X>=0
Y>=0
2500X+500Y<=50000
X+Y<=60