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

Characteristics of a stock exchange, Characteristics of a Stock Exchange ...

Characteristics of a Stock Exchange The requirements for a stock exchange to act as a platform for buying and selling securities is dependant upon the trading prerequisites. Som

Push strategy, Push Strategy This is referred for marketing approa...

Push Strategy This is referred for marketing approach in which a manufacturer uses its sales force and trade promotions to sell a product actively to retailers and wholesa

Public corporations ought to tender audited financial statem, What are some...

What are some of the government requirements imposed on a public corporation that are not imposed on a private, closely held corporation? Public corporations ought to tender au

Explain about baumol model, Q. Explain about Baumol Model? Baumol Model...

Q. Explain about Baumol Model? Baumol Model: - Baumol model is a mechanism of cash management which is used to determine optimum cash balance. Optimum cash balance is resolute

Introduction of just-in-time inventory management, Q. Introduction of just-...

Q. Introduction of just-in-time inventory management? It has already been observe that a reduction in inventory due to the introduction of just-in-time inventory management ca

Leveraged buyouts, Leveraged Buyouts (LBOs) A leveraged buyout is a fin...

Leveraged Buyouts (LBOs) A leveraged buyout is a financing technique where debt is used to purchase the stock of a corporation and it frequently involves taking a public compan

Active management of portfolio, Investors, who do not believe in Effi...

Investors, who do not believe in Efficient Market Hypothesis (EMH), adopt active management strategies. Such investors incur more search costs (with regard to tim

Calculate average amount of working capital required, X & Y is desirous to ...

X & Y is desirous to purchase a business and has consulted you, and one point on which you are asked to advice them, is the average amount of working capital which will be required

Cost of equity share capital, Cost of Equity Share Capital (ke) The co...

Cost of Equity Share Capital (ke) The cost of equity capital is the 'maximum rate of return that the Co. must earn on equity financed portion of its investments in order to go

Explain the procedure for cost benefit analysis, Question 1: i) Pe...

Question 1: i) Performance budgeting is the best budgeting system. Discuss. ii) Why there is a need for implementing MTEF in the Mauritian Public Sector? Questi

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