You are expected to read beyond textbooks and able to apply the knowledge gain from real life examples either from your working environment: Portfolio and Risk Management Report, APU, Malaysia
|University||Asia Pacific University (APU)|
|Subject||Portfolio and Risk Management|
should include a one-page Executive Summary in your report. You can choose stocks from NYSE, NASDAQ, SGX, or LSE.
This assignment aims to provide students with an opportunity to analyze various investment alternatives based on the respective risk and return so as to choose the most appropriate investment opportunity. You are expected to read beyond textbooks and able to apply the knowledge gain from real life examples either from your working environment or/and case studies read, and are able to demonstrate your competence in the areas indicated in the questions. You are encouraged to provide specific in-depth comments instead of general comments.
Instructions to students:
a. Download stock prices for twenty (20) companies from different industries and for the benchmark index – 60 monthly closing prices for each. You can use any database to obtain the prices e.g. datastream, yahoo finance (click the Investing tab followed by the Historical Prices tab), etc. Use data from December 2015 to December 2020 to generate 60 monthly returns. Calculate the annualized average return, the standard deviation of the returns, the correlation, and the beta of the twenty stocks.
b. Review the return, standard deviation and beta from (a), and identify any companies that appear to violate the risk and return trade-off concept. Discuss whether the concept of portfolio theory holds — in that portfolio risk is minimized by holding a well-diversified portfolio of shares (such as the All Ordinaries Index portfolio).
d. Group the stock into 4 portfolios according to the beta, market capitalization, book-to-market value as of December 2020. Calculate the return of the four portfolios during January 2021 – December 2021. Discuss any obvious pattern and differences or similarities with the previous empirical studies.
d. Apply the capital asset pricing model (CAPM) equation to predict the expected returns of these shares. (Hint: you must obtain the average return on the government securities).
Compare the companies’ actual average return performance during January 2021 – December 2021 with that expected by the CAPM and discuss what these results suggest about the accuracy of the CAPM as a return-estimating model. Are the share returns consistent with the results of this CAPM evaluation?
Get Solution of this Assessment. Hire Experts to solve this assignment for you Before Deadline.
Get Help By Expert
looking for an excellent report writing service on Portfolio and Risk Management then don't worry. Malaysia Assignment Help has a panel of capable writers who produce detailed reports on management assignments at a reasonable price.
Recent Solved Questions
- MPU3323: Globalisasi digambarkan sebagai proses yang merujuk kepada penyatuan seluruh warga dunia menjadi sebuah kelompok: Bachelor Of Human Resource Management With Honours (BHRM) Assignment, OUM
- You are required to provide a full bibliographic list of academic citations using the Harvard Referencing system: Special and Inclusive Education MA Assignment, UNM, Malaysia
- MPU3112: Tugasan ini bertujuan untuk menilai kebolehan pelajar menganalisis kesepaduan sosial dalam mewujudkan: Hubungan Etink Assignment, OUM, Malayasia
- BUSN 11075: The nature of creativity and this module’s aim implies that each student’s: Business Creativity Essay, LBU, Malaysia
- How do you apply the method of administration of the prophet saw in the current context: Islam and Management Assignment, USIM, Malaysia
- MGT555: Differentiate between nominal, ordinal, ratio, and interval data and Provide one example for each type of data: Business Analytic Home Work, UiTM, Malaysia
- BBUI3103 EMPLOYMENT AND INDUSTRIAL LAW – University of Malaysia
- you are required to develop a computer program with Python programming language to try and solve it: THEORETICAL ASPECTS OF COMPUTER SCIENCE Assignment, MUM
- CBSE4103: A local bank intends to install a new Automated Teller Machine to allow bank customers to perform basic financial transactions: SOFTWARE ENGINEERING Assignment, OUM, Malaysia
- Priya has been employed as a packer for Stevenage Packaging Company Ltd (SPC) since 1st January 2021: Employment law Assignment, UUM, Malaysia