Reference no: EM133066851

Provide a detailed explanation for the dot points below: 

Here is the description is given:

You will be given funds to invest in the share market. You are required to construct two $1,000,000 equity investment portfolios:

1. A passive portfolio replicating the return of the index
2. An active portfolio to achieve your investment objective of outperforming the index

You will then prepare a report in which you can explain your investment strategy for constructing a passive and an active portfolio and then evaluate the investment performance of each in terms of absolute and relative return, risk and attribution effects to explain the differences in performance of each portfolio. You will be given an equally weighted index of ten companies selected from companies listed on the Australian Stock Exchange.

• Passive Portfolio Management
• Passive Portfolio Summary
• Active Portfolio Management
• A Quick Glance at the Australian Economy (Macroeconomic Analysis)
• A snapshot of the relevant sectors that we are comparing in the portfolio's (please complete the table):

Industry	Stocks from Index	Outlook	Notes
	ANZ.AX
	APT.AX
	CSL.AX
	NCM.AX
	REA.AX
	RIO.AX
	TLS.AX
	WBC.AX
	WPL.AX
	XRO.AX