IndexThe investment portfolioStocksBloomberg systemConclusionThere is a saying; never put all your eggs in one basket. This statement becomes significant in the financial and investment market where money is the central pillar that revolves around the market. Rational investors aim to maximize expected returns for given levels of risk or to minimize risks for given expected returns. This concept can be learned from portfolio theory whose purpose is to demonstrate how investors combine assets with a portfolio as a way to deliver ideal returns for certain levels of risk (Fernholz, 2011). Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay This paper will focus on portfolio selection, especially the aggressive type and investment strategy to follow. We also examine shares of AKERS BIO, 888 HLDGS, ABDN.ASN INC and ACORN INCOME companies that may be involved in the portfolio. Ultimately, the document covers the Bloomberg system in terms of its application in researching and recording the selected portfolio. The investment portfolio A portfolio of shares with a starting value of £100,000 is a high-yield income portfolio that can generate high returns while accepting a high degree of risk. Since it can generate a high expected return and accept high risks, the portfolio can be considered an aggressive portfolio. My portfolio intends to use shares of the companies AKERS BIO, 888 HLDGS, ABDN.ASN INC and ACORN INCOME. The reason I chose these companies is because they are among the few organizations on the London Stock Exchange that reflect positive changes in share values ​​in most cases. High positive changes imply high risk, although they offer the possibility of high returns should the stocks prove to be good investments (Abbott, 2015). The shares of these companies were listed on the London Stock Exchange. The portfolio investment strategy will involve four phases; determining asset allocation, implementing asset allocation, reevaluating portfolio weights and rebalancing securities. My goal is to balance capital growth and income as well as generate high revenue. This implies that the value of the investment should also be high. The £100,000 value is a high value to risk considering this is the starting value of the portfolio. This idea is in line with portfolio theory which states that investors prefer more money to less money and require extra return for taking on additional risk (Bray, 2015). Trading with a high expected return and high associated risk suggests that the aggressive portfolio would be better suited to this. Need. In the portfolio, 5% of the portfolio value will represent cash and cash equivalents. Based on a portfolio value of £100,000, this equates to £5,000. Fixed income securities, however, would amount to 35% (£35,000) while 50% would go to shares (£50,000). This involves more risks and the possibility of generating more revenue would be high (Elton, 2014). To achieve asset allocation, capital will be divided between asset classes. For a given level of expected revenue, risks can be minimized through diversification (Standard and Poor's Corporation, 2014). Therefore, asset classes would be divided into subclasses, each presenting different risks and possible returns. The capital will be divided between AKERS BIO, 888 HLDGS, ABDN.ASN INC and ACORN INCOME, which,although they operate under a similar London Stock Exchange, their respective risks and revenues are different. In fact, the current financial position and risk tolerance is not constant, it keeps changing from time to time (Ali, 2013). This requires adjustments in the portfolio to meet these changing parameters. Therefore, the investment strategy would allow for rebalancing of the portfolio every three months. This could help address market movements that could alter initial weightings. To evaluate the effective asset allocation of the portfolio, the investments will be classified quantitatively and the proportion of their values ​​compared to the total will be determined. When rebalancing the weights of AKERS BIO, 888 HLDGS, ABDN.ASN INC and ACORN INCOME companies, my goal will be to determine overweight and underweight companies. For example, if the asset allocation suggests that 50% of the portfolio value initially allocated to the shares of these companies should be less, this will require a reduction in the asset value allocated to this class. The final investment process The strategy would involve reducing the asset value of the overweight portion and adding to the underweight groups. In the event that the £35,000 asset value allocated upfront to fixed income securities is underweight, the value of other proportions such as cash and cash equivalents or shares will be sold to purchase the underweight securities. Shares The capital of the AKERS BIO company is divided into three parts; common shares, additional paid-in capital and retained earnings (International Monetary Funds, 2015). AKERS BIO's current stock stands at 0.14 for common shares, 0.71 for additional payout shares and 3.17 for retained earnings. All these figures are in terms of millions of pounds. By adding the individual shares, the total net worth is reached at 4.02. This net worth is elevated compared to 2014, when it was 3.77, suggesting an increase in asset value or a decrease in liability. Mathematically, net worth is expressed as the total asset value of the company minus the total value of the liabilities owed by the company. Improving the total equity of AKERS BIO could be essential for the investor as he is more likely to minimize risks as the company makes profits (London College of Information Technology, 2015). Investors earn returns when stock prices change and dividends received. Therefore, the return received is a function of the dividend and the stock price at a specific point in time, as shown mathematically below (Abbott, 2015); where R is the annualized return, the dividend D1, and the stock price P at times 0 and 1. Positive changes in stock values ​​increase the returns an investor earns while decreases minimize the returns. The current price per share of 888 HLDGS is GBX 181.0 and fluctuates positively as high as 1.30. This is a +0.72% of the value of the shares which is important for an investor's profit. The average dividend yield for 888 HLDGS over the past five years was 0.03% per share. With a good return on investment and equity (25.16 and 25.49)% respectively in 2016, these values ​​suggest good returns for investing in the company (World Bank Staff, 2016). ABDN.ASN INC company aims to maximize the total return to shareholders by investing in the company's securities. The company invests in all forms of securities, particularly in stocks and equity-related securities. As of February 26, 2016, ABDN.ASN INC's estimated net worth was GBX 171.52 million, while the actual figure was GBX 171.14 million. The average valueof investments varies from time to time and, therefore, it is possible that an individual will earn less than the value invested. Therefore, understanding the risks is critical. The average trading price of the stock is 155.25 GBX with a +1.25. This represents a 0.81% increase in the stock price, which is positive for investors compared to this particular moment (Freedman, 2015). The total value of assets minus the total value of liabilities of ACORN INCOME amounts to GBX 90.74 million. Since this is the difference between the asset value and the liability value, this can be interpreted as the permanent asset value of the company. As of March 2016, ACORN INCOME's average share was 371.0, which is the highest share value of any company listed on the London Stock Exchange. This stock value changed positively by +3.00 GBX, which represents 0.81%. Credit returns and changes in stock values ​​are positively correlated and changes in stock values ​​in a positive direction will lead to positive increases in the returns received (Bray, 2015). Bloomberg System This system is used to make people know more than anyone else. Professional Arms Investor has the ability to connect professionals with detailed analysts, investors and capital structure information, appraisal statistics and market news. All these properties are interconnected to the powerful community of approximately 32,000 decision makers at the heart of a dynamic financial market (Johnson, 2014). The Bloomberg system will be used to assist in research and registration of the selected portfolio; aggressive portfolio for this matter. During the research, my focus will be access to portfolio analysts, financial analysts and portfolio policies. This will draw on Bloomberg's research resources that gather information from more than 2,500 providers in one convenient place. The research will feature intensive searching, filtering and digging into various types of portfolios and the areas for which they are best suited. The system will be used to research historical wallet developers, their contacts and recommendations. Their portfolio will be reviewed to provide a framework for my portfolio development. Furthermore, by researching contacts, it may be easy to find a way to communicate with developers who could help me develop my portfolio (Stringham, 2015). Research is invaluable to any specific process. Finance issues are volatile and it is worth researching probable companies to invest in before implementing the action. Investing in different companies helps spread risks as you don't put "all your eggs in one basket" (Abbott, 2015). Research and follow AKERS BIO, 888 HLDGS, ABDN.ASN INC and ACORN INCOME, which my portfolio intends to invest, the Bloomberg system will be an ideal tool for this application. Its interface with robust query reporting will be used to research companies in terms of purchasing power, cost base, and even market cap exposure. The system's investor relations tools will provide me with a full range of information on the stock values, net worth, ratings and earnings of the AKERS BIO, 888 HLDGS, ABDN.ASN INC and ACORN INCOME companies that I plan to follow. The Bloomberg system is used by financial analysts, bankers and brokers in analyzing and evaluating the banking sector and any changes that may occur. I also intend to take advantage of the properties associated with this system. Portfolio adjustment to cope with market changes caused by the dynamics of current financial positions will be achieved..