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

Calculate the price of winnebago stock , Calculate the price of Winnebago s...

Calculate the price of Winnebago stock (Winnebago has no debt so this is the market value of the firm seperated by the number of common shares outstanding.) from the cashflows you

Find the nominal rate of interest, (a) Find the nominal rate of interest j ...

(a) Find the nominal rate of interest j compounded quarterly which is equivalent to a 5% e ective rate of interest. (b) Which one will deliver a higher future value on a deposit

Define price ceiling make consumers better off, How can a price ceiling mak...

How can a price ceiling make consumers better off?  Under what conditions might it make them worse off? If the supply curve is completely inelastic a price ceiling will raise c

Fund of hedge funds, Fund of hedge Funds The universe of Fund of Funds ...

Fund of hedge Funds The universe of Fund of Funds (FoFs), often referred to as Fund of Hedge Funds, continues to grow from Year 2000, both in absolute terms and as a relative c

What are the operating and financing decisions of any firm, A firm's operat...

A firm's operating and financing decisions   Risk also results from decisions made within the company.  This risk is usually divided into two classes:  - Business risk is th

Define how earnings available to common stockholders, Define how earnings a...

Define how earnings available to common stockholders and common stock dividends paid from the current income statement influence the balance sheet item retained earnings. The a

Explain about the interest payments, Explain about the Interest payments ...

Explain about the Interest payments Debenture interest is generally paid semi-annually however annual payments aren't uncommon.  Usually there are registered debentures on whic

Bse-500 and sectoral indices, BSE-500 and Sectoral Indices On August 9,...

BSE-500 and Sectoral Indices On August 9, 1999, another new index was introduced in the market which was based on the data of 500 companies and designated as BSE-500 index. It

What are the internal audits, What are the Internal audits Internal au...

What are the Internal audits Internal audit is seen as independent from management who are devising and implementing internal controls and must be able to provide advice on in

Margining system, Margining System: Indian capital markets have finally...

Margining System: Indian capital markets have finally acquired an international flavor with the market-wide rolling settlement coming into place on both the premier exchanges (

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