Idioma vehicular

Figure 1 shows the basic anatomy, the hierarchy of a computer program for investment on portfolios. The program provides five following general menus (see Fig. 1):

 Management of portfolios

 List of portfolios  Measures of portfolio diversification

 Investment on portfolios

 Stock exchanges and exchange trades FINANCIAL INVESTMENT ON PORTFOLIOS

MANAG OF P. LIST OF PORTF. MEAS OF DIV: INVM.ON P. STOCK EXCHAN. PORTFOLIOS Sel. Efficient p. PEAS/ES Creating LIST OF SECUR. Creating Risk premium PD/OP Updating Creating

Updating on stock View Updating

View Rate of price View

Deleting Appreciation Portfolio with PRICES Return of min. risk Creating

portfolios View SMC to P INDEXES MCRCS Creating Secure MDX-UA.SandP investment MDX-UC SIX

Market sensitivity AD-LINE

statistics View

Numerical

Forecast of Graphic

stock prices Updating

„JAK ÚSPĚŠNĚ PODNIKAT V PŘÍHRANIČNÍCH REGIONECH JIHOVÝCHODNÍ MORAVY“ VI. MEZINÁRODNÍ KONFERENCE 2011, EPI Kunovice, Česká republika, 20. květen, 2011

76

Next chapters describe the main characteristics of each general menus. MANAGEMENT OF PORTFOLIO

The management of portfolios gives users the ability to create, modify and manipulate portfolios.

The management of portfolios is one of the basic parts of the program. In this part all portfolios are created and compiled and are worked with further, e.g. market portfolio, passive and active portfolio and correlations between each pair of stocks also enter here. The basic tables for creating, manipulation and updating of a single portfolio on stock are pictured in table 1. The users just have to fill boxes, as shown in table 1. The variance, risk, stock's sensitivity to changes, the value of the market portfolio (beta coefficients) and expected returns of portfolio are also calculated here.

The correlation matrix will be automatically displayed in portfolios are created, modified or it can be reused for new portfolios (see table 1).

LIST OF PORTFOLIOS

If portfolios are created, their attributes can be used to display and to describe various lists of portfolios. In this submenu there are calculated, displayed or printed various lists and characteristics of portfolios. E.g.:

 Forecasting of stock prices  Finding efficient portfolios  Risk premium on stock

 Rate of price appreciation (alpha)  Returns of portfolios

„JAK ÚSPĚŠNĚ PODNIKAT V PŘÍHRANIČNÍCH REGIONECH JIHOVÝCHODNÍ MORAVY“ VI. MEZINÁRODNÍ KONFERENCE 2011, EPI Kunovice, Česká republika, 20. květen, 2011

77

Table 1 illustrates and shows the attributes and properties, values of portfolio and correlation matrix of which can be added overwritten or overrided.

 A stock's margin contribution to portfolio rise and market capitalization contributions for common stock

 Secure investment

 Market sensitivity statistics Forecasting of stock prices

In this submenu the stock price forecasts are calculated. The submenu provides possibility to calculate forecasts using the three following methods:

 Correlations analysis

 Risk-taking - Gambling methods  Substantive analysis

Finding efficient portfolios

In this submenu the capital - rationing problem is solved. The submenu generates the set of efficient portfolios. This submenu can be in general used in combination with tools for quadratic programming. It is supposed that tasks for quadratic programming are separate tools and are not built into the procedures. FORECAST OF STOCK PRICES

No. of Portfolio: 451 PF Name: ACTIVE Date: 02/02/08

SECURITY NAME MIN. EXPECTED MAX.

Davex Dren, Inc. 1321.8 1323.3 1389.2

Ecatis Bren, Inc. 1303.3 1305.1 1377.2

Forum Blava, Inc. 708.1 709.1 752.4

Macittor, Inc. 1508.9 1511.0 1612.8

Tirana Talin, Inc. 1635.3 1637.6 1767.3

Ural Orp, Inc. 748.7 749.8 813.7

Radon AFC, Inc. 248.4 248.7 267.0

Table 2 illustrates the using of a computer program which calculates stock prices forecasts on the base of Risk-taking - Gambling

methods. Risk premium on stock

„JAK ÚSPĚŠNĚ PODNIKAT V PŘÍHRANIČNÍCH REGIONECH JIHOVÝCHODNÍ MORAVY“ VI. MEZINÁRODNÍ KONFERENCE 2011, EPI Kunovice, Česká republika, 20. květen, 2011

78

The submenu calculates and shows all risk premium on stock, which are included into portfolios. Rate of price appreciation

In this submenu all rates of price appreciation for chosen portfolio are calculated and displayed. Return of portfolios

The submenu provides following main functions:  browse functions each portfolio in the database

 multi-pane window with information about the attributes of portfolios  assigned attributes that were calculated using the market sensitivity statistics

A stock's margin contribution to portfolio rise and market capitalization contributions for common stock /SMC to P, MCRCS/

The submenu provides beta values and expected portfolio return Secure investment

As explained in the previous chapter, program provides various attributes of stocks to create optimal costumers portfolios. This submenu provides portfolio attributes for financial managers with possibility to select a portfolio of projects offering the minimum risk for the maximum return.

Market sensitivity statistics

Submenu is suited especially for investment community. Table 3 shows the screen output from this submenu.

As shown in table 3, market sensitivity statistics is similar to the table 9-2 in [1]. Unlike the table 9-2, betas, alphas and returns on the data based on particular market days are estimated and predicted here. For more information see also [1].

MEASURES OF PORTFOLIO DIVERSIFICATION

Two measures of diversified portfolios are calculated and displayed in this submenu:

 The number of shares in a portfolio that has equal amounts invested in each share (PEA/ES)

„JAK ÚSPĚŠNĚ PODNIKAT V PŘÍHRANIČNÍCH REGIONECH JIHOVÝCHODNÍ MORAVY“ VI. MEZINÁRODNÍ KONFERENCE 2011, EPI Kunovice, Česká republika, 20. květen, 2011

79

Table 3 illustrates information which is interesting for investment communities  The variance of the returns on our portfolio (FD/OP)

 Investment shares on out portfolios that would have minimum risk Investment shares on out portfolios that would have minimum risk are also recalculated and displayed here.

INVESTMENT ON PORTFOLIOS

This procedure gives recalculation of financial characteristics. The output from this procedure is identical with the output in the upper part of the table 1. It also enables variant investment on portfolios with lending and borrowing.

STOCK EXCHANGES AND EXCHANGE TRADES

Submenu extends the program functionality. The submenu is the central part of the program. This submenu individually and in combination with submenus MANAGEMENT OF PORTFOLIOS and LIST OF PORTFOLIOS, enables financial managers to build highly integrated solutions. This submenu supports feature such as values of securities.

With this submenu it is possible to add, delete, change or display attributes of securities, add and display new prices, calculate, display and draw market indexes. Values of stocks that have been modified or added must be defined again on other submenus. Besides that, the submenu provides the following functions:

 Creating, editing and showing each stock in the database  Modifying the stock attributes assignment for new trade day  Add new stock prices

 Calculating or recalculating market indexes

 Add, delete or modify methods of market indexes calculating

This submenu with function Market sensitivity statistics generates source risks, betas, alphas and returns values of stock, which can be included (default) or overwritten in an application. In Figure 2 function INDEXES - Graphs have plotted the examples of MDX-UC, S&P and AD-Line indexes from four stock exchanges.

„JAK ÚSPĚŠNĚ PODNIKAT V PŘÍHRANIČNÍCH REGIONECH JIHOVÝCHODNÍ MORAVY“ VI. MEZINÁRODNÍ KONFERENCE 2011, EPI Kunovice, Česká republika, 20. květen, 2011

80

Figure 2 illustrates various graphs of market indexes