Comment and analyze based on the rankings

Reference no: EM132497769

Investment Management and Portfolio Analysis

Assignment 1

Calculate for each stock

• Average yearly return,
• Its return variance and;
• Standard deviations throughout the period

Comment and analyze on the results calculated above based on the ranking which stock is having the highest yearly returns and standard deviations of individual stocks from 2010 to 2014.

Assignment 2

Construct three types of portfolios of equal weights
Portfolio A consists of any of 4 stocks, (1/4 ; 1/4 ; 1/4; 1/4 )
Portfolio B consists of any of 5 stocks, and ( 1/5; 1/5; 1/5; 1/5; 1/5)
Portfolio C consists of all 10 stocks. (1/10; 1/10; 1/10; 1/10; 1/10; 1/10; 1/10; 1/10; 1/10 1/10)

Assuming that each stock has equal weight in the portfolio, calculate Portfolio A, B, and Cs' average yearly returns, return variances and standard deviations,

Comment and analyze based on the rankings which portfolio has the maximum returns and which portfolio is having the minimum standard deviation. Give the reasons (Economic reasons)
.
Assignment 3

A. Construct your own portfolio which includes a different number of stocks from Portfolio A, B, and C.
B. Can you justify why you choose such a portfolio?
C. Are there any stocks which you should not include in your portfolio? Can you provide your justifications? (You may draw performance graphs of one stock against the market portfolio).
D. Can you find out which portfolios (i.e. Portfolio A, B, C and your own portfolio) or stocks (i.e. 10 sample stocks) perform badly or good in the period of 2010 to 2014.

Attachment:- Investment Management and Portfolio Analysis.rar

Reference no: EM132497769

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