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

Define moody or standard & poor credit ratings, Why do most international b...

Why do most international bonds have high Moody’s or Standard & Poor’s credit ratings? Answer:  Moody’s Investors Service and Standard & Poor’s offer credit ratings on several

Question, You deposit $500 today in a savings account that pays 3.5% intere...

You deposit $500 today in a savings account that pays 3.5% interest, compounded annually. How much will your account be worth at the end of 25 years?

Examine about the risk-based auditing, Examine about the Risk-based auditin...

Examine about the Risk-based auditing A risk based audit will be reviewing the risk management process and considering main risks of the organisation as a whole. Risk manage

Establish ground rules for the study and design phases, Question : One ...

Question : One activity of the study phase is: "Establish Ground Rules for the Study and Design Phases". (a) What are ground rules? (b) When developing ground rules for a

Advantages and the disadvantages of a new stock issue, What are the advanta...

What are the advantages and the disadvantages of a new stock issue? A new stock issue increases funds and decreases the riskiness of the firm.  It as well tends to send a negat

Define the basic motivations for a counterparty, Define the basic motivatio...

Define the basic motivations for a counterparty to enter into a currency swap.  Answer:  One major reason for a counterparty to enter into a currency swap is to exploit the comp

Cost of retained earnings , Cost of Retained earnings (K ) Retained ea...

Cost of Retained earnings (K ) Retained earnings are that portion of EPS that is retained by the firm.  This may be measured as the rate of return which the existing share hol

Joint product decision, Joint Product decisions more detail

Joint Product decisions more detail

Define accounts receivable are sometimes not collected, Accounts receivable...

Accounts receivable are sometimes not collected.  Why do companies extend trade credit when they could insist on cash for all sales? Extending trade credit almost all the time le

Cash flow statement ratios, Cash Flow Statement Ratios: This ratio, wh...

Cash Flow Statement Ratios: This ratio, which is defined as a percentage, compares a company's operating cash flow to its total sales or revenues, which provide investors an i

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