Portfolio Project, The purpose of this project is to help you to gain an understanding of, Portfolio Management

Portfolio Project, Portfolio Management

Assignment Help:

The purpose of this project is to help you to gain an understanding of how the stock market works and of the relationship between theory and practice.

You are given a notional £200,000 to invest and manage. You are required to follow an active trading policy at least in the first term. In the second term you can follow a buy and hold policy. Shares must be bought in multiples of 100 if the price is less than £2 and in multiples of 50 if the price is greater than £2. Debentures and Government stocks, which have a nominal value of £100 each, may be bought without restriction.

Commission is payable on all purchases and sales, at the following rates:

Ordinary Shares 1.0% of value (minimum: £10)
Government Securities 0.7% of value (minimum: £12.50)

You may invest in overseas securities, though all transactions must be in £ Sterling.

Transfer stamp duty is payable on all share purchases: the rate is £0.50 for every £100 or fractional part of £100.

There are no overdraft facilities nor additional sources of finance. Your cash balance must not become negative.

You are required to liquidate your holdings by Friday 22 March, 2013, and to submit your portfolio project, together with your transactions table, by Friday 29 March, 2013. When writing up the project, there is no need to describe every single transactions you have entered into (though every transaction should be listed in your transaction sheet). You should:

(i) Outline the portfolio theory that you have applied in your project.

(ii) Carefully explain your investment policy, giving examples of how you implemented it and explaining how and why it changed over the life of the project (if it did);

(iii) Explain carefully what brought about the changes (for example, knowledge you gained on the course or from practical experience);

(iv) Comment on your findings.

(v) Comment on the divergence between the theory you have learnt on the course and the practical problems of implementation;

(vi) Comment on the performance of the stock market in general and on what you think has influenced it over the life of the project;

(vii) Provide an assessment of how well your strategy has worked in terms of risk and return. This will require a brief comparison with other strategies, one such being a buy-and-hold policy.

(viii)Any limitations that you encountered.

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages

Portfolio Project, Portfolio Management

Related Discussions:- Portfolio Project

Boumal-Tobin Demand for Money, The Baumol-Tobin model is a model that expl...

Derivatives, 2. The futures price for the June 17, 2009 CBOT bond futures c...

American opportunity tax credit, A tax credit that allow more student and p...

Coursework, i need help to complete my coursework.

Portfolio Optimization, Do you expert? This is urgent work for 10 hours usi...

Project valuation., how to valuate a pharmaceutical company (Adcock Ingram)...

Uration and covexity, 12. Bill Peters is the investment officer of a $60 mi...

A-share, In the category of multi-class mutual funds, this is the class tha...

Brokers, Kinds of Brokers and assistants

Dividend Discount Model, Prepare a separate stock recommendation analysis f...

Write Your Message!

Featured Services

Online Tutoring

Project Development

Exam Preparation

Course Help

Assignment Help

Popular Subjects

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT