1

Investment Assignment /AUAF Spring 2016

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