1. You have 1000000Tk to invest. You will be given an excel file where each group has...
Question:
1. You have 1000000Tk to invest. You will be given an excel file where each group has to select a minimum of four stocks to invest in and create your portfolio.
2. Try to spread your investment over the different industries.
3. You may select the stocks based on the industry stability, low P/E ratio, and previous company dividend payout trend of different stocks. Also, try to use your general knowledge and tools like “Top-down” or bottom-up investment approach for creating the portfolio. You can also have the data of each stock’s performance from the DSE library to enrich your analysis to evaluate each stock.
4. For each stock:
a. Calculate the average daily return of each stock of your portfolio and risk from provided excel data sheet
b. Calculate the average daily return for DSE index and risk (for the same period)
c. Calculate the covariance and correlation between each pair of stocks
d. Calculate beta for each stock.
5. Form a variance-covariance matrix
6. For Portfolio:
a. Calculate the risk and return of your portfolio
b. Derive an efficient frontier (the most important!)
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