The portfolio analysis is considered one of the advanced investment methods on the capital market. The idea arises from the diversification of the risk of investing in securities. In the classic approach, the assumption is that increasing the number of shares in a portfolio leads to reduction of portfolio risk measured by the portfolio’s variance. In earlier works, the terms vertical risk diversification and horizontal risk diversification were introduced. The former is a classic method of diversification risk. In the latter, the main idea involves an adequate selection of stock companies (based on the evaluation of their economic/financial condition) for which portfolios are to be created.

The article presents research results of the effectiveness of various approaches which use multidimensional comparative analysis methods (particularly the TMAI [taxonomic measure of investment attractiveness] synthetic measure of development) as well as classic approaches on the Polish capital market. The subjects of research were all stock companies listed on the Warsaw Stock Exchange continuous trading quotations from 2000 to 2013. The basic aim was the comparison of the classic approach with an approach combining fundamental analysis with portfolio analysis. Moreover, an evaluation of the validity of such a combination within the conditions of the Polish capital market was made.

In the study were used data from the Warsaw Stock Exchange. In the case of a proposal for joins fundamental and portfolio analysis additionally for researched companies were used economic and financial data from database Notoria Servis. The annual rates of return calculated on the end of each year investment duration and on the day of 14.03.2013 were used to evaluate the effectiveness of the proposed portfolios.

JEL (C10, G12)

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