Types of Investments and Investment Strategies of a Private Investor: Evaluation of the Effectiveness of Rebalancing Strategies in Portfolio Investment

Olga Fedotova

Bakalářská práce

Abstract:

This bachelor's thesis examines portfolio investments and investment strategies of private investors, with a particular focus on portfolio rebalancing as a risk management tool. The main objective of the thesis is to evaluate the effectiveness of various rebalancing strategies in managing a diversified investment portfolio. The theoretical part of the thesis is based on an analysis of classical and modern approaches to portfolio theory, asset allocation and portfolio rebalancing presented in the works of Gibson, Ferri and Bogle. The practical part includes the application of quantitative methods and portfolio modelling based on historical market data for the purpose of comparative evaluation of the effectiveness of selected rebalancing strategies. The effectiveness of portfolio strategies is assessed using indicators of return, volatility and risk-adjusted return. The results of the analysis allow conclusions to be drawn about the impact of rebalancing frequency and methodology on portfolio stability and long-term investment results. The conclusions may be useful to private investors seeking to improve the effectiveness of portfolio risk management through systematic rebalancing.

Keywords

Portfolio investment, investment strategies, rebalancing, asset allocation, risk, return, volatility, passive investing

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 17. 3. 2026

Obhajoba závěrečné práce

• Vedoucí: Ing. Kristýna Kučírková, MSc
• Oponent: Jared Daniel Jacques

Česká zemědělská univerzita v Praze

Provozně ekonomická fakulta

Bakalářský studijní program:
Business Administration