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

The visitors perceive to justify the renovation, Lincoln Park Zoo in Chicag...

Lincoln Park Zoo in Chicago is considering a renovation that will improve some physical facilities at a cost of $1,800,000. Addition of new species will cost another $310,000. Addi

Bonds with warrants, Bonds with Warrants: Warrants are usually attached...

Bonds with Warrants: Warrants are usually attached with the bonds or preference shares to attract the investor. The objective is to induce the potential investors to subscribe

The process of review and audit of internal control systems, The process of...

The process of review and audit of internal control systems The board of directors are responsible for review and maintenance of internal controls. Management  of  the  company

Walter''s dividend model, explain the assumptions underlying Walter''s divi...

explain the assumptions underlying Walter''s dividend model?

Limitations of the cash flow yield measure, Bond's potential re...

Bond's potential returns are calculated using measures like Yield to Maturity (YTM) and cash flow yield. Both these measures are not free from s

Define the term shareholders, Shareholders Shareholders are usually ass...

Shareholders Shareholders are usually assumed to be interested in wealth maximisation. This though involves consideration of potential return and risk. Where a company is liste

Average Return, How do I calculate the average return for T over a five yea...

How do I calculate the average return for T over a five year period?

Financial management in marketing department, Q. Financial Management in Ma...

Q. Financial Management in Marketing Department? The marketing department of a firm is concerned with the ultimate activity of the firm Le. the selling of goods and services to

Operating cycle, discuss the applicability ofan operating cycle in a poultr...

discuss the applicability ofan operating cycle in a poultry business(broilers)

Agency mortgage-backed securities, Agency Mortgage-Backed Securities ...

Agency Mortgage-Backed Securities (AMBS) are securities that are backed by the mortgage loans. These securities include mortgage passthrough securities, stripped

Write Your Message!

Captcha
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!

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