Investment Assignment /AUAF Spring 20161

Assignment on: Theory of Professor Andrew Ang

Andrew Ang is business professor who teaches investment and his areas of expertise is Asset Allocation, Risk and Return. His all research and PHD field is based on simple two questions:1. Where I should put my money?2. What is the relationship between risk and return?To answer this questions Ang is trying to explain by giving a daily life, vital experience, which is eating food. According to him, the food we eat contain nutrients that gives energy to body to move and react and do the daily work, not the food itself. The same tactic applies to investment. When you invest in something there are factors that drive the risk and return relationship. The second example that Mr Ang is working on currently is the municipal bond which is also bundled with several factors that drives the relationship between agency and investors. According to Mr Ang and his concepts and understanding of investments, there is always some factors attached to every investment which plays the key rule in relationship between risk and return of assets. And also there are many ways for asset allocation.

End of Assignment

American University of Afghanistan / By Rahmatullah Rahmati ID# 13596