Vertybinių popierių portfelių formavimas fundamentaliosios analizės pagrindu
Securities Portfolios Formation on the Basis of Fundamental Analysis

Summary/Abstract: Portfolio formation is quite a new tendency in Lithuania as its financial markets are still less active than in other European countries. Many well–known economists are interested in portfolio formation problems, they develop new asset assessment models, study asset allocation possibilities which ensure better portfolio diversification and higher return. Lithuanian economists try to adopt developed theories of portfolio formation in Lithuania. The basics of fundamental analysis have become more and more important lately as it allows to identify companies the capital market ratios of which are quite attractive and company’s the stocks of which fit for the portfolio perfectly taking into consideration their risk return trade-off. Thus, the paper describes how to identity effective combinations of stocks and form the optimal portfolios for different investors. Some investors are risk averse and others are risk tolerant, therefore their preferences are different and they hold portfolios with different risk return trade-off. The paper applies the mentioned investment analysis tools in practice. It analyzes a three-year price history of selected stocks, returns for the same period and correlation and covariance between stocks. The results of optimal portfolio analysis which allows the investor make effective investment decisions are presented in the paper.

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