80.2K

Verified Solution

Link Copied!

The following table of information is useful for task 4.

(Data only for academic & learning purpose only)

	Company Name	Closing Price (Share Value) as on 31st December,
		2017	2018	2019	2020	2021
1	Vista Telecommunication	2.1450	2.8150	2.4420	2.3800	2.7450
2	National Automobiles	2.4530	2.6700	3.9800	2.0500	2.8500
3	Dynamic Airlines	2.6450	2.8230	2.9990	23.9800	2.2760
4	Imperial Bank	2.7250	2.9810	2.9090	2.9320	2.9280
5	Future Retail	2.6900	2.8900	2.5520	2.7695	3.5800
6	Kingdom Constructions	1.7150	1.5790	2.8210	2.8050	2.9350
7	Century Plastics	2.8500	2.2550	2.5690	2.9300	2.4200
8	Deccan Park	3.4690	3.8500	3.8650	3.9000	3.8500
9	Continental Travels	2.0890	2.8320	3.2450	2.2240	2.0280
10	Five Start Hospitality	3.6900	2.7930	2.7930	2.7500	2.3400
	Assume: Market Returns (Rm) = 8 % Risk Free Rate (rf) = 5%
	* Hypothetical Value to the nearest place taken for academic purpose only

.Task 4 (4 Marks)

1. Construct your own portfolio which includes a different number of stocks from Portfolio A and B completely different from others
2. Can you justify why you choose such a portfolio?

Particulars	Portfolio A (4 stocks)	Portfolio B (6 stocks)	Own portfolio your choice to select any number of stocks Maximum 6 stocks
Arithmetic Mean
Standard Deviation

3. Are there any stocks which you should not include (your judgement or your preference) in your portfolio? Can you provide your justifications? (You may draw performance graphs of one stock against the market portfolio).
4. Can you find out which portfolios (i.e. Portfolio A, B and your own portfolio) or stocks (i.e. 10 sample stocks) perform badly or good in the period of 2017 to 2021
5. (2 marks for Table presentation + 2 marks for analysis and comments)

(Comments : Maximum 100 words)

Answer & Explanation Solved by verified expert

See Answer