Finance2

In: Business and Management

Submitted By fly4407211
Words 661
Pages 3
Group Assignment
Application of Portfolio Theory
Semester 2, 2013

Total Marks: 40
Percentage Weighting: 20 %

Investment Guidelines

You are required to construct an Equity Investment Portfolio with the following specifications:

Market: Australia
Portfolio Size: $1 Million
Portfolio Composition: 4 assets; must be shares of companies listed on the ASX
Asset Allocation: Direct Investment in equities
Time Horizon: 5 years commencing January 1st, 2008 to January 1st 2013
Transaction Fees, taxes and charges: Ignore Portfolio Policy Objectives: Maximise total return (capital gains plus reinvested income) Portfolio Liquidity: $10 000 in cash or near-cash required per year Portfolio Benchmark: S&P ASX200 Portfolio Management Style: Passive, Buy and Hold Asset Weights: Equal weighting Market proxy: S&P ASX200 Risk free proxy: 90 day Bank Accepted Bill rate (BAB)

1. Portfolio Construction

* Manually collect price data for your 4 assets from the investment horizon - 5 years commencing January 1st, 2008 to January 1st 2013. * The price data should be Monthly. Depending on your choice of company you could find the price data from: Yahoo finance; the ASX; or the company’s own website * Download the price data for the sample period required.
[Note: You must leave all formulas in your answer, the excel functions allowed are “AVERAGE”,“SUM” and “SQRT” only]. Other excel data analysis package or functions can be used for checking purposes only.

i. Calculate the mean return and standard deviation of each investment asset ii. Calculate the mean return and standard deviation of your portfolio iii. Calculate the mean return and standard deviation of the market portfolio (S&P ASX200) iv. Generate the variance/covariance matrix for: the individual…...

Similar Documents

Franchising and Franchise Relationship

...wa.gov.au 8. http://franexcel.com/resources.php?id=24 9. http://sbinfocanada.about.com/od/franchiseinfo/a/buyfranchise.htm 10. http://www.wikinvest.com/concept/Franchising 11. http://www.entrepreneur.com -------------------------------------------- [ 1 ]. In 1978, the FTC created the Uniform Offering Circular (UFOC) requiring franchise companies to provided detailed information to potential franchisees. This document was updated in 2007 and renamed the Franchise Disclosure Document (FDD) [ 2 ]. Customers of the franchisee [ 3 ]. No competing brands in the product category [ 4 ]. Usually in several parts, fixed and variable [ 5 ]. Klein Benjamin (1995), “The Economics of Franchise Contracts”, Journal of Corporate Finance2, no.1,pp.9-37 [ 6 ]. Accept contracts that give great power to the franchisor [ 7 ]. World-renowned brand "Hilton" has also signed a franchise agreement with "Stone Bridge Hotel" over the construction of "Double Tree by Hilton Skopje" along the river Vardar in Aerodrom municipality in Skopje, Macedonia in May 2013. [ 8 ]. “ Power in a Channel of Distribution: Sources and Consequences” Shelby D. Hunt and John R. Nevin...

Words: 11974 - Pages: 48

Term Paper

...Pakistan.Global Journal of Management And Business Research11: 1. 8. Javaid, S., Anwar, J., &Zaman, K., (2011). Determinants Of Bank Profitability In Pakistan:Internal Factor Analysis.Mediterranean Journal Of Social Sciences2: 1. 9. Percin, S., & Ayan, T.P., (2006). Measuring Efficiency Of Commercial Banks In A DevelopingEconomy: The Case Of Turkey.Investment Management And Financial Innovations3: 2. 10. Rosly, S.A., and Abubakar, M.A., (2003). Performance of Islamic and mainstream banks in Malaysia. International Journal of Social Economics 30:12. 11. Safiullah, M. (2010). Superiority of Conventional Banks & Islamic Banks of Bangladesh: A Comparative Study. International Journal of Economics and Finance2: 3. 12. Samad, A. (2004). Performance Of Interest-Free Islamic Banks Vis-À-Vis Inter est-Based Conventional Banks Of Bahrain, IIUM Journal Of Economics And Management12:2. 13. SBP-State Bank of Pakistan (2011). Quarterly Islamic Banking Bulletin, 2009-2011. 14. [14] Shar,A., Ali, M., Jamali, H., (2010). Performance Evaluation Of Banking Sector In Pakistan: An Application Of Bank ometer. International Journal of Business and Management5:8. 15. [15] Shar,A., Ali, M., Jamali, H., (2010a). Performance Evaluation Of Pre-Post Nationalization OfBanking Sector In Pakistan: An Application Of Clsa-Stress Test. International Journal Of Business And Management5: 11. 16. Sheik, S.A., & Ali, A.,...

Words: 6894 - Pages: 28

Corporate Governance

...making Relevant Law IBW Act No 19/1960 Commercial Law Relationship of the company to the government Part of government agency Autonomous organisation Autonomous organisation The Board of Directors appointed By the president By the president By the GMS Capital Part of annual budget Government participation Share Capital Employment status Public servant Based on special regulation Similar to private employees Scope of business Public utility (vital and strategic) Public utility Similar to private enterprise Source: Djamhari (1996:177) During this regime era, the “state control” over SOEs was levied under the Directorate General of SOEs in the Ministry of Finance2. The state control means there was no clear separation between the state’s ownership functions and state controlling functions. Accordingly the state had absolute control over SOEs. While this power could have been used to positively manage SOEs, many believed that SOEs were not managed properly3. The poor performance of SOEs was not only because of their management, but also because of the organizational structure and its unfavourable position4. In view of these circumstances, SOEs had reduced their contribution to the state from time to time and finally many of them were collapsed during the financial crises in the late 90s. 2 Nugroho and Wrihatnolo, Pengalaman Revitalisasi......

Words: 131549 - Pages: 527