You are working as a fund manager in MZZ Asset Management Company. You are required to build up a diversified pure-equity fund. And there should be twostocks listed in the London Stock Exchange. Also, the target clients require ethical investment only. You are required to produce a recommendation report which shows the following information:

• Top-down strategy which includes economic and industry analysis 
• Equity analysis which focuses on ratio analysis

There is no risk-free asset. Shortselling is allowed.

Notes: only stocks listed for more than five years will be incorporated in the portfolio. Ratio analysis needs to be applied on financial data of each firm over five years.