User Account

All Pages

assignment, Financial Management

Assignment Help:
Imagine you have been allocated $100,000 which is to be invested in 8 companies listed on the
Australian Stock Exchange (ASX). You are required to have a balanced portfolio between shares
of companies from two different sectors i.e., mining, industrial, etc. – the balance may be based 9
on the dollar amount of your investment, or the number of companies invested under each
category.
Your imaginary investment must commence no later than Monday 20 August 2012. You will
need to record the name of each company that you invest in, the number of shares acquired on
that date, and the amount of money invested in each company up to the total amount of $100,000.
You can “acquire” your shares any time up until Monday 20 August 2012. For the requirements
of this assignment, ignore brokerage expenses and taxes.
The shares that you have acquired will be treated as being sold on Friday 5 Oct 2012.
Required
At the end of the investment period (Friday 5 Oct 2012) you are to prepare a report on each
company in which you have invested. Your report should include the following:
? Full name of each company in your portfolio
? Period of Investment (Date of “acquisition” and Date of “sale”)
? Dollar amount invested and number of shares acquired in each company
? A review of each company within your portfolio. This should include movements in
share prices during the investment period (including plot of the share prices) and any
other additional information which is relevant to each company, e.g. matters related to
potential or actual takeovers or other matters of commercial interest. Plot the daily
movements in share prices of each of your investment companies based on the acquisition
price of your shares listed on the A.S.X. (800 words)
? The financial year you have selected for beta analysis, which may be the financial year
end of 2010 OR 2011 or both, if required to compare with your calculated beta.
? The beta coefficient for ONE of the companies from each sector of your choice (ie, ONE
of industrial companies AND ONE of the mining companies you have selected in the
financial year you have selected), together with an interpretation of these coefficients.
(150 words)
? Analysis of portfolio risk and return (depending on your requirement to complete the
assignment). (150 words)
? A summary of how financially successful your investment was over the period taking
into account your purchase price for each investment compared to the selling price for
each investment, your gain or loss on each investment, and your gain or loss overall, i.e.
the gain or loss on your portfolio. Included in your summary you must show which
classification of investment offered a greater return – ie, Industrial shares or Mining 10
shares. Considering the concepts of risk and return, in which classification of shares
would you prefer to invest in the future? (400 words)

Related Discussions:- assignment

Bond market innovations, As liberalization is gathering momentum, cor...

As liberalization is gathering momentum, corporate treasures and merchant bankers are in the process of devising new products to suit the needs of investors and c

Senior versus subordinate bonds, This is again a distinction which be...

This is again a distinction which becomes important in case of a default. The senior bondholders have to be paid before the subordinate bondholders. This means th

Accounting framework - convention of materiality, Accounting Framework - Co...

Accounting Framework - Convention of Materiality Materiality means relative significance. In other words whether a matter should be disclosed or not in the financial statement

Describe the external economies of scale, In the 2000s the German discount ...

In the 2000s the German discount chain Aldi began an expansion on the east coast of Australia. One strategy of Aldi is to encourage small retailers such as butchers, bakers, delica

Calculate npv-irr - mirr - payback and discounted payback, Calculate NPV-IR...

Calculate NPV-IRR - MIRR - payback and discounted payback: 1-      Define and explain as well as you can of the following: a-      Goals and objectives of the Corporate Fir

Tax-backed debt, An analyst should first examine the issuers ...

An analyst should first examine the issuers debt structure in order to analyze the tax-backed debts. The debt burden consists of respective direct a

Statement used in working capital requirement, • Debtors :- Working Capi...

• Debtors :- Working Capital tied up in debtors must be estimated on the basis of cost of sales (excluding depreciation): [Cost of goods produces (that is raw materials + wages

Explain the powers and functions of sebi, Question 1 What is liquidity ris...

Question 1 What is liquidity risk? What are the causes for liquidity risk? Question 2 Explain the powers and functions of SEBI Question 3 Discuss the various categories

Working of securities and exchange commission, Working of SEC The SEC s...

Working of SEC The SEC supervises the main members in the securities world, including securities brokers and dealers, securities exchanges, investment advisors, and mutual fund

Expected monthly return, In this exercise you will construct efficient port...

In this exercise you will construct efficient portfolios with 5 risky assets using Excel's non-linear optimization routing "Solver". The questions are designed to be sequential and

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd