Compare and contrast the two portfolios

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Reference no: EM132245872 , Length: 2000 Words

Advanced Financial Management Assignment -

LEARNING OUTCOMES -

1. Articulate core concepts, principles and theories of corporate finance and financial investments at final year undergraduate level.

2. Demonstrate competence in the application of theory and appropriate quantitative techniques to corporate financial management.

3. Demonstrate competence in the application of theory and appropriate quantitative techniques to the management of stock market portfolios.

Assignment: Share Trading

Assignment Objectives - You are given a notional SGD 100,000 to invest on the Singapore stock market in shares selected from the list of shares in the FTSE ST ALL Share Index (listed on the SGX). You need to split your investment 50:50 between two portfolios of shares, one where you select the shares by technical analysis and the other by fundamental analysis. Your aim is to beat the market with both portfolios. It is important you can demonstrate that you know the difference between these methods. You need to compare and contrast the two portfolios and you need to make explicit reference to EMH in your analysis.

Submission Requirements - You need to submit a 2000-word report on your trades, including full referencing according to APA.

Assignment Requirements -

  • You are given a notional SGD100,000 to invest in the Singapore stock market.
  • Use historical and live market data from 5 Nov 2018 (Monday) to 25 January 2019 (Friday). This means that you are going to have to use short-term investment strategies. You will have approximately 2 weeks to finalize.
  • The aim is for you to try to beat the market. The market is represented by the FTSE ST ALL Share Index - if you do not 'beat the market you will not lose marks, most people will find it impossible to do better than experienced investors. You must calculate the return on the market from your first trade to your last trade in order to determine whether you have beaten the market or not.
  • The shares MUST be listed on the FTSE ST ALL Share Index.
  • You are not allowed to use derivatives, such as options or any short selling.
  • 50% of your investment must be based upon fundamental analysis and the other 50% on technical analysis (Based on two theories - no more or less, just TWO).
  • Each of your portfolios must contain at least 10 companies' shares.
  • You are allowed to trade as many times as you like.

Recommended Format -

Introduction - You need to explain the strategies you used and which if any of your portfolios beat the market. The target profit is a holding period return of at least 5 percent.

Literature Review - This section should provide theoretical and empirical evidence to demonstrate your understanding of EMH and Behavioural Finance and their conflicting view.

Rational and Methodology - How did you select the companies for your portfolios? You don't have to give a list of every company and why, it should be in general. The detail should be in the appendix. You need to make reference to the technical theories you have used and justify your approach, this should be done by making direct references to the journal articles read.

Results and Analysis - Critically evaluate the performance of your two portfolios. Did they beat the market? Which was the best? Your results should be referenced back to the literature review you have read on the type of analysis you have used and on the EMH.

Conclusion - Provide an informed conclusion to your report.

Presentation: Structure, clarity, use of grammar, correct spelling, referencing.

Appendix - Spreadsheet of all of your trades, with notes on why you chose your companies. The spreadsheet needs to have profit and loss for each of your shares and should say your final profit. The spreadsheet needs to take account for trading costs, see below for details.

Attachment:- Assignment File.rar

Reference no: EM132245872

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Reviews

len2245872

2/28/2019 11:28:51 PM

Submission Requirements - You need to submit a 2000-word report on your trades, including full referencing according to APA. It needs to be submitted to Turnitin. An appendix with a spreadsheets of your trades (these should not be submitted to turnitin) Guidelines for All Assignments: Assignments should be typed using 12 font size, Times New Roman font style and 1.5 line spacing. Course members should familiarize themselves with the University’s policy on the late submission of coursework. Note: All assessment submitted must be the result of your own work.

len2245872

2/28/2019 11:28:45 PM

Assignment Requirements - You are given a notional SGD100,000 to invest in the Singapore stock market. Use historical and live market data from This means that you are going to have to use short-term investment strategies. You will have approximately 2 weeks to finalize and to submit the report by but you should progressively do parts of the report as you trade during this period. The aim is for you to try to beat the market. The market is represented by the FTSE ST ALL Share Index – if you do not ‘beat the market you will not lose marks, most people will find it impossible to do better than experienced investors. You must calculate the return on the market from your first trade to your last trade in order to determine whether you have beaten the market or not.

len2245872

2/28/2019 11:28:40 PM

The shares MUST be listed on the FTSE ST ALL Share Index. You are not allowed to use derivatives, such as options or any short selling. 50% of your investment must be based upon fundamental analysis and the other 50% on technical analysis (Based on two theories – no more or less, just TWO). Each of your portfolios must contain at least 10 companies’ shares. You are allowed to trade as many times as you like.

len2245872

2/28/2019 11:28:33 PM

Submission Requirements - Your final report should be submitted to Turnitin. There is no hardcopy submission to the Assessment centre. The appendix with a spreadsheet of your trades should not be submitted to Turnitin. An Online Moodle Assignment submission is required. The filename must be in this format ‘FT11 AFM_UP student number’ for FT students, and PT11 AFM_UP student number’ for PT students. An assignment dropbox will be setup on the unit Moodle site for this. Your online submission must be in a single WORD document, and to contain the cover page with the UoP student number, declaration, similarity index page, the report and appendices.

len2245872

2/28/2019 11:28:28 PM

Grading System - Excellent work – able to express an original reasoned argument in a lucid manner by reviewing and critiquing a wide range of material. Original, critical thinking based on outstanding insight, knowledge and understanding of material. Material contributes to current understanding and is of potentially publishable quality in terms of presentation and content. Wide reaching research showing breadth and depth of sources.

len2245872

2/28/2019 11:28:22 PM

Outstanding work – contains accurate, relevant material, demonstrates understanding of complex subject matter and is able to view it in a wider context. Shows originality and confidence in analysing and criticising assumptions, is aware of the limits of knowledge. Likely to add new insights to the topic and approaches the quality of published material. Evidence of extensive research, uses and presents references effectively. Outstanding quality in terms of organisation, structure, use and flow of language, grammar, spelling, format, presentation, diagrams, tables etc.

len2245872

2/28/2019 11:28:16 PM

Excellent work which contains relevant material and shows analysis, originality or creativity of approach and a clear, well-articulated understanding of the subject matter. Wide research incorporating up-to-date, relevant original material. Accurate citation and use of references. Excellent with few or no errors in organisation, structure, grammar, spelling, punctuation, use of diagrams and tables. Excellent work that often shows some originality or creativity of insight and approach, is well-articulated and demonstrates a good thorough understanding of the subject matter at an introductory level. Shows evidence of considerable research beyond recommended textbooks and the Internet. There may be some attempt to cite references. References and / or bibliography presented according to subject convention. Well-presented, well-structured, good organisation with few or no errors in grammar, spelling or punctuation. Presentation of diagrams and / or tables follows required format.

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