The role of portfolio structure management is very important to have an optimal investment portfolio. One of
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Question:
The role of portfolio structure management is very important to have an optimal investment portfolio. One of the main points taken into consideration while constructing the portfolio is the return and risk. The data below pertain to two companies, Gulf Company and Red Sea Company. The following information relate to their stocks.
Gulf Company
Year | Stock initial price | Stock end time price | Dividend |
2014 | 790 | 796 | 14 |
2015 | 812 | 830 | 13 |
2016 | 922 | 945 | 5 |
2017 | 1005 | 1015 | 16 |
2018 | 1040 | 1035 | 11 |
Read Sea Company
Year | Stock initial price | Stock end time price | Dividend |
2014 | 406 | 411 | 7 |
2015 | 421 | 430 | 22 |
2016 | 460 | 471 | 3 |
2017 | 455 | 450 | 18 |
2018 | 571 | 565 | 12 |
You are required to prepare a report containing the following:
- Write an introduction relevant to the risk. (150 words)
- Analyse both companies by calculating the average return, variance and standard deviation of both stocks. (350 words)
- Make a conclusion which contains summary and recommendation on which stock should be selected to adjust the portfolio construction.
Related Book For
Elementary Statistics
ISBN: 978-0538733502
11th edition
Authors: Robert R. Johnson, Patricia J. Kuby
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