Final answer:
Portfolio analysis is a method that involves assessing various components to make informed decisions about investment selections or work demonstrations, balancing risk and return.
Step-by-step explanation:
The central method used in portfolio analysis is to evaluate and select the composition of assets in a way that balances risk and return. For writing courses, this might include choosing works that show the student's range and growth throughout the semester, often accompanied by a cover letter or reflective piece explaining the value of each work and potentially self-assessing their performance. In a financial context, portfolio analysis involves
- Analyzing the risk involved in different types of financial assets
- Showing the relationship between savers, banks, and borrowers
- Calculating bond yield
- Contrasting bonds, stocks, mutual funds, and other assets
- Explaining the tradeoffs between return and risk
This method allows decision-makers to put a value or worth on various components and make informed decisions about investment or work selections.