CAPITAL MARKETS, INVESTMENTS and FINANCE
MAN2909M
Group Coursework Assessment
Weighted 30% of the total assessment
Word limit: 2,500 (excluding tables, graphs, references and appendices)
Guidance on exceeding the word limit can be found in Section 7 of the module handbook.
Description
The group coursework assessment requires you to write up a report based on four tasks. In the report, you need to analyse given stock data and to make some suggestions
on portfolio composition. Your answer for each question should be supported by your group data analysis. The report’s format requires a professional setting with
title, contents, page numbers, sections-subsections and references. Each member of your group is expected to contribute equally to the whole project.
Group coursework
You have price information on 10 stocks, FTSE All Share Index, and risk-free rate (UK T-bill rate) from 01/2007 to 12/2011. All of the data information can be found in
the excel spread sheet “Group_work” which will be uploaded on the Blackboard. You are required to finish the following 4 tasks with your group members and write a
report based on the 4 tasks.
Task 1: Individual stocks (25%)
i) Calculate each stock’s average monthly return, its return variance and standard deviations throughout the period 01/2007 to 12/2011.
ii) Using the price information of the FTSE All Share Index as a proxy for market portfolio, calculate each stock’s beta value throughout the period 01/2007 to
12/2011.
iii) Explain why some stocks have beta values greater than 1 while others are below 1 (you may do some research on firm backgrounds and their business).
Task 2: Portfolio Analysis (25%)
i) Construct three types of portfolios. Portfolio A consists of any of 3 stocks, Portfolio B consists of any of 6 stocks, and Portfolio C consists of 10 stocks.
Assuming that each stock has equal weight in the portfolio, calculate Portfolio A, B, and Cs’ average monthly returns, return variances and standard deviations, and
beta values.
ii) Which of the Portfolios A, B, and C, has the highest return standard deviation? Does this portfolio have the highest average monthly return? Can you explain why?
iii) In terms of portfolio beta, which portfolio is the most risky one?
iv)Will the three portfolios have a same ranking, if you rank their betas and return variances respectively? Can you provide economic reasons why the two rankings
should be (in)consistent with each other?
Task 3: Comparing individual stock and portfolio (25%)
i) Is Portfolio B’s average monthly return higher than any of 6 individual stocks’ average monthly return? Why?
ii) Is Portfolio B’s return standard deviation higher than any of 6 individual stocks’ return standard deviation? Why?
iii) Is Portfolio B’s beta value higher than any of 6 individual stocks’ betas? Why?
iv) Should investors invest their money in individual stock or in portfolio? Please provide justifications for your answer.
Task 4: Choose your own portfolio (25%)
i) Construct your own portfolio which includes a different number of stocks from Portfolio A, B, and C.
ii) Can you justify why you choose such a portfolio?
iii) Are there any stocks which you should not include in your portfolio? Can you provide your justifications? (You may draw performance graphs of one stock against
the market portfolio).
iv) Can you find out which portfolios (i.e. Portfolio A, B, C and your own portfolio) or stocks (i.e. 10 sample stocks) perform badly or good in the period of 2009 to
2011.
Note: In the report, you should briefly describe how you obtain numeric results. To save the number of words, you are encouraged to use graphs and tables to illustrate
your ideas if necessary. You can also use the Excel software to help get results. You may need to select a group leader who can allocate the 4 tasks among group
members and can co-ordinate different tasks.
Marks of the four tasks are equally weighted. The following factors will be taken into account when the lecturer marks your report.
1. Numerical accuracy
You are required to show the procedures to get the results.
You need to obtain correct numerical results for each task.
2. Understanding
You need to show the marker that you understand the difference between stock and portfolio performance. Your arguments and conclusions should be supported by the
numerical answers. You need to discuss whether your results are consistent or inconsistent with portfolio theories.
3. Clarity and structure
Your arguments should be organised in a clear and logical way. Your final mark will reflect whether you have the depth of knowledge in the report. Attention should be
drawn to the University’s policy on plagiarism.
Our Service Charter
-
Excellent Quality / 100% Plagiarism-Free
We employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers. -
Free Revisions
We keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed. -
Confidentiality / 100% No Disclosure
We make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service. -
Money Back Guarantee
If the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit. -
24/7 Customer Support
We have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.