Portfolio Project, Portfolio Management

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.
Posted Date: 3/25/2013 7:38:31 PM | Location : United Kingdom







Related Discussions:- Portfolio Project, Assignment Help, Ask Question on Portfolio Project, Get Answer, Expert's Help, Portfolio Project Discussions

Write discussion on Portfolio Project
Your posts are moderated
Related Questions

solve the mean variance problem to construct a portfolio f a securities consider in ar least 5 securities:no short salling and with lending & borrowing

Ask question #Minimum 100 words acce8-10 pagespted#

Problem 1: The procurement concept encompasses a wide range of supply activities including all stages of the procurement cycle. Explain briefly these stages. Describe why the

b) Mr. Castro uses a 20% hatch system of timing when to invest in a stock market. In a given, the top of a given share was Shs.150/= and its bottom was Shs.90. During the year the

‘If correlation among security returns were perfect-if returns of all securities moved up and down together in perfect unison, diversification could do nothing to eliminate risk. T

how to value convertible preference shares

Weighted average cost 13% cash flows: 1st Year = $20 million 2nd Year = $30 million 3rd Year = $40 million FCF grows at 7% after year 3 No of shares - 10 million Marketable securi

If the HPY on a 2 year investment is 11.4% and you invested $8,000 at the start, what would be the ending value?

2. Compare and contrast the scope and construction of the following three U.S. stock market indices: • the Dow Jones Industrial Average (DJIA); • the Standard and Poor 500 (S&P 500