Enhancing the efficiency of portfolio management for individual investors in viet dragon securities company,graduation thesis

STATE BANK OF VIETNAM BANKING ACADEMY OF VIETNAM Faculty of Foreign Languages GRADUATION THESIS ENHANCING THE EFFICIENCY OF PORTFOLIO MANAGEMENT FOR INDIVIDUAL INVESTORS IN VIET DRAGON SECURITIES COMPANY Student : Nguyen Thuy Linh Class : ATCB K12 Student ID : 12A7511096 Lecturer : Nguyen Thi Hien Hanh (M.A) Hanoi, May 2013 DECLARATION I declare that this thesis is the product of my own work and has not been previously submitted for my degree or examination in any other university All the sources I have used have been indicated and acknowledged by means of complete references Signature Date i DEDICATION This thesis is dedicated to my beloved family and my precious friends for their tremendous spiritual support and encouragement ii ACKNOWLEDGEMENTS I would like to convey my heartfelt thanks to my beloved instructor and my mentor, Ms Nguyen Thi Hien Hanh, M.A and Ms Nguyen Thi Nguyet Minh, for their great inspiration, constant guidance and valuable support In spite of their busy schedules, they always found time to guide me through the thesis I also owe my deepest gratitude to all of my teachers at Banking Academy of Vietnam, especially those of the Faculty of Foreign Languages Last but not least, I offer my regards and blessings to all of those who supported me in any respect during the completion of the thesis Because of time constraints and limited capacity of the writer, this thesis will certainly not be free from defect Therefore, it is my hope that lecturers and readers of the thesis will sympathize and offer further contribution to it iii ABSTRACT Portfolio management is considerably critical for investors to successfully achieve their targeted return and diminish the potential related risks Due to limited and complex nature in some part of the process as well some other external factors, portfolio management is quite challenging for organizations Beside many portfolio management tools and techniques, academics and practitioners have studied and recommended complex models to facilitate the portfolio management However, these theoretical frameworks are, somehow, not applied by securities companies in Vietnam Therefore, this dissertation is intended to better understand the academic and practical literature of portfolio management; study current practices of portfolio management activity in Viet Dragon Securities Company; and propose a framework that is beneficially adaptable to Viet Dragon Securities A case study strategy accessing qualitative data through observations, interviews and sources of reports is designed to investigate how Viet Dragon Securities manage their individual investor’s portfolio under the current contexts of recession in Vietnam to ensure successful realization of their growth and development strategy The recommendations resulted from literature review and investigations not only support the investigated corporation to improve the efficiency of their portfolio management but also facilitate possible adaptation to portfolio management by other securities companies iv TABLE OF CONTENTS DECLARATION i DEDICATION ii ACKNOWLEDGEMENTS iii ABSTRACT iv TABLE OF CONTENTS v LIST OF ABBREVIATIONS viii LIST OF TABLES AND FIRGURES ix CHAPTER 1: INTRODUCTION 1.1 Rationale of the study 1.2 Aims of the study 1.3 Research questions 1.4 Research methodology 1.5 Thesis organization CHAPTER 2: LITERATURE REVIEW 2.1 Overview of investment portfolio 2.1.1 Definition 2.1.2 Return and risk of an investment portfolio 2.1.2.1 Return of an investment portfolio 2.1.2.2 Risk of an investment portfolio a Variance of an investment portfolio b Covariance of an investment portfolio c Correlation coefficient of an investment portfolio 2.1.3 Risk diversification of investment portfolio 2.1.4 Portfolio construction theory 2.1.4.1 Markowitz model and efficient frontier 2.1.4.2 Optimal portfolio 10 2.2 Portfolio management service for investors at security company 10 2.2.1 Motives for using portfolio management service 10 2.2.2 Portfolio management activity in security company 11 v 2.2.2.1 Portfolio management process 11 a Step 1: Planning step 11 b Step 2: Execution step 12 c Step 3: Feedback step 12 2.2.2.2 Strategies in portfolio management 12 2.3 Methods of evaluating the efficiency of portfolio management for clients at security company 13 2.3.1 Measurements of portfolio management efficiency at security company 13 2.3.2 Risk-adjusted measures of return from portfolio management at security company 14 CHAPTER 3: PORTFOLIO MANAGEMENT FOR INDIVIDUAL INVESTORS AT VIET DRAGON SECURITIES COMPANY 3.1 Introduction to portfolio management activity at Viet Dragon Securities Company 16 3.1.1 Overview of the establishment and development of Viet Dragon Securities Corporation 16 3.1.2 Organization structure 17 3.1.3 Portfolio management activity in Viet Dragon Securities Company 18 3.1.3.1 Overview of portfolio management for individual customers in Viet Dragon Securities Company 18 3.1.3.2 Portfolio management process 20 a Step 1: Determining the client’s objectives and constraints 21 b Step 2: Constructing the investment portfolio 22 c Step 3: Executing the transaction and portfolio management 22 d Step 4: Evaluating the efficiency of portfolio management 22 3.2 The efficiency of portfolio management for individual customers at Viet Dragon Securities Company 21 3.3 Major issues about portfolio management activity at Viet Dragon Securities Company with the primary causes 24 3.3.1 Major issues about portfolio management activity in Viet Dragon Securities Company 24 vi 3.3.2 The primary causes 25 3.3.2.1 The security market in Vietnam 25 3.3.2.2 Legal framework and policies in Vietnam 25 3.3.2.3 Clients of portfolio management service in Viet Dragon Securities 25 3.3.2.4 Weaknesses of portfolio management process in Viet Dragon Securities Company 26 CHAPTER 4: SOLUTIONS AND RECOMMENDATIONS TO ENHANCE THE EFFICIENCY OF PORTFOLIO MANAGEMENT FOR INDIVIDUAL INVESTORS IN VIET DRAGON SECURITIES COMPANY 4.1 Solutions to enhance the quality of portfolio management for individual investors at Viet Dragon Securities Company 27 4.1.1 Customer network expansion 27 4.1.2 Reinforcing the human resources 27 4.1.3 Solutions for technological issues 28 4.1.4 Solutions to complete the portfolio management process 28 4.1.5 Solutions to better the method of estimating the risk aversion of individual investors 30 4.1.6 Solutions to manage risk of individual investor’s portfolio 31 4.2 Recommendations 35 4.2.1 Recommendations to the Government 35 4.2.2 Recommendations to the investors 36 CONCLUSION 37 REFERENCES 39 vii LIST OF ABBREVIATIONS VDSC: Viet Dragon Securities Company VCBS: Vietcombank Securities Company IPS: Investment Policy Statement Eximbank: Vietnam Export - Import Commercial Joint Stock Bank Satra: Saigon Trading Group viii LIST OF TABLES AND FIGURES Tables: Table 3.1: The number of brokers working at VDSC 17 Table 3.2: Management fee structure for individual investors in VDSC 18 Table 3.3: Five main utilities for clients of VDSC 19 Table 3.4: The different characteristics between aged groups in investment 20 Table 3.5: Efficiency of typical investment portfolios in VDSC in 2012 22 Table 4.1: Basic portfolio management products in VCBS in 2009 29 Figures: Figure 2.1: Risks and number of portfolio assets Figure 2.2: Efficient frontier Figure 2.3: Optimal investor portfolio Figure 3.1: Organizational chart of VDSC 16 Figure 3.2: Number of accounts in VDSC from 2009 to 2012 18 Figure 3.3: The portfolio management process in VDSC 20 Figure 3.4: Results of portfolio management accounts in VDSC in 2012 22 Figure 4.1: Covered call Pay-off diagram 34 Figure 4.2: Protective Put Pay-off diagram 35 ix Nguyen Thuy Linh ATCB K12 Graduation thesis 2013 have to choose the best securities which may not be suitable with the client’s objectives and constraints in order secure the upside of return 3.1.2 The primary causes: 3.1.2.1 The security market in Vietnam: Vietnam market security has established for 12 years, therefore, still remained in the unstable and poor-organized, which lead to a lot of difficulties for long-term investments Besides, the securities issuing of public corporations still remains spontaneous There are many enterprises which issue securities to mobilize capital to finance their investment in security market other than enhance their manufacturing and business This phenomenon has contributed a large part to the market bubble and the default risk when the market goes down In addition, the securities listed on security market are still not diversified and are not able to fulfill the requirements of quality, transparency and risk managements of investors Some factors which enhance the efficiency of market like short-selling and derivative products are still limited in the Vietnam security market 3.1.2.2 Legal framework and policies in Vietnam: Security Laws in Vietnam is still narrow in term of adjustment scope and doesn’t cover all the activities in the security market in accordance with international practice Some regulations in the guideline documents of Security Laws overlapped the others and remained not consistent with other legal documents There is still a lag in promulgating the legal regulations Simultaneously, some regulations in the Security Laws have not been clearly guided to execute 3.1.2.3 Clients of portfolio management service in Vietnam Some clients are get used to trade on their own and not aware enough about the roles of delegating brokers the portfolio management Whereas, some over-expect the return of investment portfolio, thereby creating some disadvantages for portfolio managers 25 Nguyen Thuy Linh ATCB K12 Graduation thesis 2013 3.1.2.4 Weaknesses of portfolio management process in Viet Dragon Securities Company: The portfolio management process in Viet Dragon Securities Company and the others is still not standardized Transaction system sometimes has a lot of errors or cannot work efficiently, which cannot ensure the frequency of transactions The qualifications of brokers in Securities Company are not standardized, therefore, there are some shortcomings in the application of technical analysis into investment decision making Currently, in Viet Dragon Securities Company, the managers concentrate on using fundamental and technical analysis to choose securities and make a suitable allocation but not the theoretical model like function generating, Markowitz frontier, consequently, cannot ensure the optimal investment portfolio 26 Nguyen Thuy Linh ATCB K12 Graduation thesis 2013 CHAPTER 4: SOLUTIONS AND RECOMMENDATIONS TO ENHANCE THE EFFICIENCY OF PORTFOLIO MANAGEMENT FOR INDIVIDUAL INVESTORS IN VIET DRAGON SECURITIES COMPANY 4.1 Solutions to enhance the quality of portfolio management for individual investors at stock company: 4.1.1 Customer network expansion: With the purpose of developing the portfolio management activity as well as becoming one out of ten best securities company in Vietnam in 2016 as targeted, VDSC needs to build a sustainable development strategy in order to uphold the strengths and enhance the competition ability The brokers and portfolio managers should enhance the quality of customer service; build a long-last trust of clients through the best services and high investment efficiency Along with that, VDSC should attempt to find an impressive way to solicit the new target group of clients’ new contracts, thereby creating more new contracts In practice, employee of VDSC has currently had few plain strategy of approaching customers like via direct calls or through the referrals of existing clients In the forthcoming time, VDSC can open new channel to meet the customers such as via internet or newsletters, etc., which could be effective and cost-saving In addition, the company can apply several of kind of advertisement such as: holing the weekly workshop about the offered services, meetings with the group of investors or commercials on public press, etc The company should consider the advertising campaign which is suitable with their target group of customers 4.1.2 Reinforcing the human resources: In the short term, the urgent activity that needs to be carried out immediately is training the employees about the portfolio management In order to get involved in portfolio management activity in the company, the brokers must have to meet high requirement of the jobs Normally, portfolio managers in the world are really 27 Nguyen Thuy Linh ATCB K12 Graduation thesis 2013 well-trained, have a high qualifications with the master degrees and well-known certificates Viet Dragon Securities Company should encourage the brokers take some training course inside and outside the company as well as endeavor to obtain career certificates to improve their performance VDCS should consider some factors of candidates before assigning them to the portfolio management such as:  Have a deep passion with the career  Be dedicated and assiduous with the job  Be decisive  Have a good qualification and adequate competency  Be sensible of market changes to make a due analysis and reasonable judgments Viet Dragon Securities Company should build an attractive compensation and promotion to keep the employees be loyal to the company Besides, the working environment and corporate culture should also be paid a due attention to inspire the employees and make them stat with the company 4.1.3 Solutions for technological issues In the security company, information technology plays a very critical role in managing the business efficiently and ensuring the transaction execution precisely and timely to meet the client’s demand In order to have a effective information technology system, the company needs to choose a partner about information technology which is experienced and offer the reasonable cost of service Recently, VDSC has done research about the software application to the activities of Securities Company with back-office system and front-office system 4.1.4 Solutions to complete the portfolio management process Portfolio management process is very important when carrying out the activity If it is followed strictly and consistently by the portfolio managers, the portfolio management will be implemented legally, logically and transparently, 28 Nguyen Thuy Linh ATCB K12 Graduation thesis 2013 which can help the managers obtain the most efficiency in carrying out portfolio management The suggested process included six primary steps:  Step 1: Consulting the investors and collecting client’s information to file the client’s documents Investors need to be consulted and well-informed about the general information of securities market in Vietnam, the tools of securities investment and the trend of securities market in the forthcoming time; thereby facilitating the process of delegating the investment decision making to portfolio managers  Step 2: Construct the basic targets for the portfolio management Based on the signed contract, the brokers will determine the asset allocation policy, investment constraint and investment strategy to maximize the benefit of the customers These provisions must be strictly and closely followed as stated in the contract  Step 3: Signing the portfolio management delegation contract and depositing money to the bank After signing the contract, the securities company will open account on behalf of the customer accordance with the provisions stated in the contract Customers deposit money in the bank so as to be ready for the investment disbursement  Step 4: Constructing the investment portfolio  Step 5: Carrying out the portfolio management These steps may be similar to the step portfolio construction existing portfio management process in Securities Company  Step 6: Terminating the portfolio management contract At a specific point in the investment period, usually from two to three months prior to the terminal date, two parties will discuss whether to extend the contract term or not The customers are free to choose continue the contract or terminate the contract If the contract is chosen to be completely terminated, all securities will be sold and all the money received will be transferred to the customers 29 Nguyen Thuy Linh ATCB K12 Graduation thesis 2013 4.1.5 Solutions to better the method of estimating the risk aversion of individual investors: Estimating the risk aversion of clients is a complex task which requires the doer have deep knowledge about client’s features and enough experience to make a precise estimate In some circumstances, the result of the task also depends on the nature, physical and psychological factors, therefore, being really abstract and difficult to determine The suggested solution is that Viet Dragon Securities Company should use the psychological test by forming the client’s information polls and the questionnaires to measure the risk aversion of the clients Based on the collected and processed information, the level of client’s risk tolerance can be divided into three categories: (1) Risk averse, (2) Risk-neutral and (3) Risk-seeking or risk-loving Viet Dragon Securities can base on the three mentioned categories to design a wide range of portfolio management products which are suitable with the client’s objectives, constraints as well as risk tolerance These products will be standardized to obtain the most efficiency VDSC can consider some of the basic portfolio management products of the BESTFIT Investment in Vietcombank Securities Company in 2009 Produ Objectives Investment Risk horizon tolerance Long-term Above to High 150% of Vnindex growth of capital years Medium-term to years High 130% of Vnindex to years High 120% of Vnindex to years Above Vnindex + 3% ct Targeted return growth of capital Short-term growth of capital Medium-term growth of capital medium 30 Nguyen Thuy Linh ATCB K12 Balance Balance Graduation thesis 2013 Above Above 60% of Vnindex + years medium 40% of GBY-5 + 3% to years Medium 40% of Vnindex + 60% of GBY-5 + 2% Balance to years Below 30% of Vnindex + medium 70% of GBY-5 + 2% Frequent income to years Low GBY-5 + 2% Frequent income Above Medium 20% of Vnindex Above 100% of Vnindex years 10 Index follow to years medium 11 Index follow to years High Vnindex + 6% Table 4.1: Basic portfolio management products in Vietcombank Securities in 2009 (Source: Annual reports of Vietcombank Securities in 2009) 4.1.6 Solutions to manage risk of individual investor’s portfolio: Viet Dragon Securities Company should pay a due attention to control and manage risk of client’s portfolio The first step of risk control can be choosing the risk management method and strategy In practice, there are some strategies which can be efficiently employed such as:  Risk avoidance: The best risk management strategy of all is avoidance or elimination, so we should invest the most effort into investigating this option wherever possible Avoidance usually means not doing a task or project at all in the future but it can also mean redesigning work or a process so that the risky step no longer has to be taken Avoidance or elimination strategies include the option of not performing an activity that could carry risk at all An example would be not buying a property or business in order to not take on the liability that comes with it Avoidance may appear to be the best 31 Nguyen Thuy Linh ATCB K12 Graduation thesis 2013 solution to all risks However, avoiding risks also means losing out on the potential gain that accepting (retaining) the risk may have allowed Not entering a business to avoid the risk of loss also avoids the possibility of earning profits  Risk transference: Transfer is not always available to the manager as an option but after looking at avoidance strategies this may be the next best choice Transfer means causing another party to accept the risk, typically by contract or by hedging Insurance is one type of risk transfer that uses contracts Other times it may involve contract language that transfers a risk to another party without the payment of an insurance premium Liability among construction or other contractors is often transferred this way Another example would be taking offsetting positions in derivative securities This is typically how brokerage firms or fund managers use hedging for financial risk management  Risk acceptance: There are two kinds of acceptance, active and passive Acceptance is active when a risk is identified as being acceptable but we decide to make a plan for what to when and if the risk occurs It is much more effective to have a plan in place when these types of risk occur rather than trying to deal with the risk when there is little time and lots of hysterics There is also another risk involved: the wrong thing can be done to solve the problem because its solution was not clearly thought out under pressure in the heat of the moment  Risk mitigation: Mitigation (or treating/lessening the risk in some way) is essentially concerned with lessening the impact that a particular risk might have In considering this strategy, we have usually accepted that the risk cannot be readily avoided or transferred and are therefore now only trying to keep the expected loss or damage to acceptable levels In most cases, mitigation involves achieving a reduction of the risk impact This means that our mitigation strategies should either reduce the probability that the risk 32 Nguyen Thuy Linh ATCB K12 Graduation thesis 2013 will occur or lessen the overall severity (damage or loss) experienced when it happens In addition, Viet Dragon Securities Company can also use derivatives products like future contracts, forward contracts, swap and options to hedge risk from volatility of security price in the market There are some primary strategy using the combination of derivative products such as covered call and protective put Portfolio managers can use them in accordance with the objectives of the clients to reduce the loss and protect the gain from investing in securities in the portfolio  Covered call A covered call is when the investor has a long position in an asset combined with a short position in a call option on the same underlying asset A call writer may be required to deliver the stock if the buyer exercises his option If the call writer has the shares on deposit with her broker, then she has written a covered call There is no margin requirement for a covered call; this is because the underlying securities are sitting right there - there is no question of creditworthiness An investor will write a call option when he feels that a particular stock's price will not rise above a certain level Note that if the call option is exercised in the money, the call writer will sell the call option holder's stock from his inventory at the strike price indicated in the option contract His maximum loss would then be: Maximum loss = Call Premium + Exercise Price - Price Paid for underlying asset Let's look at an example Suppose that you have 250 shares of XYZ that you bought for $17 and that the XYZ Jul 20 call option trades for $1 The following diagram illustrates the typical payoff to expect from a covered call 33 Nguyen Thuy Linh ATCB K12 Graduation thesis 2013 Figure 4.1: Covered Call Pay-off Diagram Covered Call Pros: - Profits when the stock remains stagnant due to call written - Allows additional profits to be made due to call written if the stock should rise but not beyond the strike price of the call options Covered Call Cons: - Limited protection up to the amount written on the call options - Limited profit beyond strike price of call options  Protective Put A protective put is an option in which the writer has cash on deposit equal to the cost to purchase the shares from the holder of the put if the holder exercises his right to sell This limits the writer's risk because money or stock is already set aside The risk, however, is not that great The stock is not going to be purchased at the spot price; it is going to be purchased at the exercise price, which was agreed to the day of the opening transaction The higher the spot price goes, the more the writer benefits because she buys the stock at the lower exercise price and sells it for whatever she can get in the market There is a risk that the spot price will go down, but the lowest it can go is $0 and that almost never happens in the span of time covered by an options contract 34 Nguyen Thuy Linh ATCB K12 Graduation thesis 2013 Example: Say ABC stock trades for $75 and its one-month $70 puts trade for $3 A put writer would sell the $70 puts in the market and collect the $300 [$3 x 100] premium Such a trader expects the price of ABC to trade above $67 in the coming month, as represented below: Figure 4.2: Protective Put Pay-off Diagram Thus, we see that the trader is exposed to increasing losses as the price of the stock falls below $67 For example, at a share price of $65, the put seller is still obligated to buy shares of ABC at the strike price of $70 He or she would face a loss of $200, which is calculated as the following: $6,500 (market value) - $7,000 (price paid) + $300 (premium collected) Protective Put Pros: - Unlimited protection below strike price of put options bought - Leaves unlimited upside open Protective Put Cons: - Results in a loss on the extrinsic value of put options bought if the stock remains stagnant or did not rise beyond break even point 4.2 Recommendations: 4.2.1 Recommendations to the Government The Government should make an effort to develop the securities market, the environment of portfolio management by issuing more favorable regulations and promotions to encourage the foreign investor entry to the market 35 Nguyen Thuy Linh ATCB K12 Graduation thesis 2013 Besides, Government should also assure the stability of regulations that exposes to securities market to keep it stay healthy and stable and the regulatory authorities need to strengthen the regimes and legal framework to better the performance of securities market 4.2.2 Recommendation to the investors Firstly, the investor should not over-expect in the profitability of the portfolio management, which can cause some difficulties for the managers in construct and manage the portfolio Secondly, it is essential and helpful for investors to read the basic knowledge about the securities to obtain the needed knowledge and experience for themselves in delegating the portfolio management Lastly, investors should record the investment documents and update frequently the situation of macro-economic, securities market, etc., thereby facilitating the discussion between investors and portfolio managers After obtaining the theoretical framework as well as the portfolio management in practice with some critical issues, this last chapter of graduation thesis has drawn some solutions and recommendation to Government as well as individual investors are mentioned to enhance the quality and efficiency of portfolio management activity in Viet Dragon Securities Company in particular and Securities Companies in Vietnam in general 36 Nguyen Thuy Linh ATCB K12 Graduation thesis 2013 CONCLUSION The development of security market has offered many potential investment opportunities to the individual investor in Vietnam However, recently, it has been proved that this playground is really tough, hence the individual investors need the support from financial analysts through the professional financial service such as portfolio management With the purpose of figure out the solutions and recommendations to develop the portfolio management activity at Viet Dragon Securities Company, the thesis has discussed about four main issues The first chapter reveals how this topic is chosen, especially in the context of recession in Vietnam currently The introduction part also states aims of the study, research questions, methodology and organization of the thesis In the second chapter, the literature review of the portfolio management activity has been illustrated with the definitions of investment and the returns and associated risks of a investment portfolio The author also mentions about the efficient frontier and the Markowitz model to construct an optimal portfolio by combination the indifference curve of the investor and the capital allocation line In addition, chapter illustrates the process of management with three main steps as well as the general and risk-adjusted measures of efficiency of portfolio management in the securities company After this chapter, the reader could obtain an overall view about portfolio management and how it is employed in a securities company In the third chapter, the author gives the readers an insight into the Viet Dragon Securities Company and how it apply the literature review from the second chapter to its portfolio management activity in practice After a thorough analysis, the author finds out that Viet Dragon Securities Company has a solid foundation of the portfolio management activity with a large number of brokers and an increasing accounts adequate process of portfolio management, namely determining client’s target, asset allocation, constructing and monitoring the portfolio periodically 37 Nguyen Thuy Linh ATCB K12 Graduation thesis 2013 However, after measuring the efficiency of portfolio management in five typical portfolios and analyzing the primary factors affecting the activity, it is concluded that there are still some issues need to be tackled to better the results of this sector in Viet Dragon Securities Company These issues are under-developed customer base, inefficient method of estimating the risk tolerance of the individual investors, potential failure from subjective judgments of the portfolio managers and the difficulty to apply the theoretical framework from the developed countries to the company due to the context of Vietnam security market The other causes are also mentioned with consideration In last chapter, with the purpose of enhancing the quality and efficiency of portfolio management activity in Viet Dragon Securities Company, the author has raised some suggested solutions such as customer network expansion, reinforcing the human resources or solutions to better the portfolio management process as well as the method of estimating the risk tolerance of investors and solutions to manage risk of the portfolio through risk avoidance, transference, acceptance and mitigation strategy associated with using derivative products Besides, some recommendations to Government and individual investors are also discussed With the great effort in collecting adequate information and doing research as well as the support from lecturer, this thesis still confronts some difficulties that cannot absolutely solved However, I hope that my research can provide some precious aspects of enhancing the portfolio management efficiency for individual investors in Viet Dragon Securities Company in particular and hopefully, in Vietnam securities market in general 38 Nguyen Thuy Linh ATCB K12 Graduation thesis 2013 REFERENCES Haugen, Robert A (2001) Modern Investment Theory 5th ed Prentice Hall (p 134-136) Bode, Zvi, Alex Kane, Alan J Marcus (2005) Investments 6th ed McGraw Hill (p 67-68) Gordon K.William (1998) Building and Managing an Investment Portfolio, The MacMilan Spectrum (p.143-144) Markowitz, H.M (March 1952) Portfolio selection, The journal of Finance Mas-Collel, A., Whinston, M and Green, J (1995) Microeconomic Theory, Oxford University Press, New York (p.89-90) Viet Dragon Securities Company (2009-2012) Annual Reports of Brokerage Department of Viet Dragon Securities Company 2012 Hanoi Viet Dragon Securities Company (2009-2012) Financial statement of Viet Dragon Securities Company Hanoi Viet Dragon Securities Company (2010-2012) Statistical Reports of Brokerage Department of Viet Dragon Securities Company Hanoi Vietcombank Securities Company (2011) Annual reports of Vietcombank Securities Hanoi Investopedia (2011) Portfolio definition and explanation Retrieved 25th May 2013 from http://www.investopedia.com/terms/p/portfolio-investment.asp 39