Financial Essay

2597 words - 11 pages

-------------------------------------------------

|
-------------------------------------------------

-------------------------------------------------

-------------------------------------------------

-------------------------------------------------

-------------------------------------------------

-------------------------------------------------

-------------------------------------------------

-------------------------------------------------

-------------------------------------------------

-------------------------------------------------

-------------------------------------------------

...view middle of the document...

| Executive summary | 1 |
2. | preface | |
3. | Optimum portfolio | |
4. | Steps of constructing portfolio | |
5. | Short sell scenario | |
6. | conclusion | |
| | |
-------------------------------------------------

-------------------------------------------------

-------------------------------------------------

-------------------------------------------------

-------------------------------------------------

-------------------------------------------------

-------------------------------------------------
Executive Summary

My main objective in this report is to find the efficient portfolio with a portfolio of 10 securities which are of A category listed in DSE before 2005. We are working on Monthly data. There are numerous number of companies listed in DSE. I have selected 10 listed companies of DSE. As I am using data of five years I have selected companies based on their P/E ratio and NAV
The number of investors in both Dhaka and Chittagong stock exchanges are increasing day by day. Indexes are showing upward movement in curve. But upward movement of indexes is not the best predictor of market condition.
True investor should always be careful about the market movement and reasons behind this movement. So before buying and selling securities they should analyze the security very carefully and construct the portfolio so that in the time of market collapse they can survive. In present condition if we watch our stock markets we can say only careful investors has survived.
The “right” kind of diversification requires that we own securities that don’t behave alike. In other words their price movements have low correlation with each other. We can limit the volatility of our portfolio by spreading out our risk among different types of investments.
An efficient is either a portfolio that offers a highest expected return for a given level of risk, or one with the lowest level of risk for a given return. The line that connects all these efficient portfolios is the efficient frontier. Our goal is to build an efficient portfolio.
I used monthly closing price of each companies from January 2007 to December 2011. Some companies have split their share recently. I multiplied the price with split ratio and assumed the situation to be pre split situation. All the companies have paid dividend throughout the year. I adjusted the dividend with price assuming the market to be perfect. As per perfect market theory price will increase by the amount of dividend at declaration date and reduce by the amount of dividend at record date. As there was no information available about the record date I assumed declaration date and record date are at the same month and adjusted the price in the month of declaration date
So in this report I have tried to construct efficient portfolios on the basis of different risk/return requirement. I have chosen the companies based on their industry performance. I have analyzed six...

Other Papers Like Financial

Financial Essay

3587 words - 15 pages Distibution and Customer Service 20 Advertising and Promotion 21 Market Forecast 22 Financial Plan Capital Requirements 24 Use of Proceeds 25 Opening Day Balance Sheet 26 Start-up Costs 27 Break-even Analysis 28 Key Financial Ratios and Formulae 28 Pro forma Balance Sheet 29 Pro forma Income Statements 30 Pro forma Cash Flow Statements 33 Pro forma

Financial Essay

2496 words - 10 pages drink we have chosen to invest in another companies stock to hopefully achieve some funds and keep our product out there to take over the energy drink market one day and improve the lives of people. Investment in the Coca-Cola Company will bring quality financial funds over the next ten years to Freedom Energy to help with our growth as a company and the improvement and innovation of our energy drink products. Research Methods To determine

Financial

2534 words - 11 pages heterogeneous population as well as financial structure. The country has lack of infrastructure development. It is characterized by low labour productivity. All these factors have negative impact on the price of the Brazilian currency and economic growth of the country. Optimistic long-term forecasts of the Brazil’s economy give us reason to suppose that the country may meet excising challenges and the major currencies will face strong competition

Financial - 5347 words

5347 words - 22 pages Modelling Approach to Testing the Financial Liberalisation Hypothesis”. Economics Working Paper Series 2005, University of Wollongong. Ukpolo, Victor. (1994), Export Composition and Growth of Selected Low-Income African Countries: Evidence from time-series data. Applied Economics 26:445-449. Wacziarg, R., 2001. Measuring the dynamic gains from trade. World Bank Economic Review 15, 393–429. Xu, B., 2000. ‘Multinational enterprises, technology diffusion, and host country productivity growth’, Journal of Development Economics, 62: 477-93. 19

Financial Systems

2477 words - 10 pages 2  The role of financial systems in the economy This section iscusses the main functions of financial intermeiaries an financial markets, an their comparative roles. Financial systems, i.e. financial intermeiaries an financial markets, channel funs from those who have savings to those who have more prouctive uses for them. They perform two main types of financial service that reuce the costs of moving funs between borrowers an leners, leaing to

Financial Policies

564 words - 3 pages CheckPoint: Effective Financial Policies and Procedures • Resource: Figures 15.1 & 15.2 on pp. 485–486 of Medical Insurance • Post a 350- to 400-word response to the following: The three major elements to critical thinking are logical inquiry, problem solving, and evaluative decision making. In this CheckPoint, you must exercise critical thinking skills to answer the following questions: • Medical offices must have

Financial Crisis

682 words - 3 pages Financial crisis:- Financial crisis are those crisis which related to the economy of the country. In the scenario of financial crisis the value of assets going down gradually and the GDP’s of the country are going downward in negative zone. How financial crisis held? Financial crisis are held when the banks face the shortage of money. In this way investors sell of their assets and withdraw money from their accounts because they think the

Financial Statements

781 words - 4 pages Financial Statements Genesis Ruiz Acc/290 June 14, 2012 Mary Larsen Financial statements When people think of business they think of money. Business is not about just money there is a lot more to it. Money is business but what happen when you go deeper into financial statements. Financial statements are a collection of reports about an organization's financial results and condition. Financial statements

Financial Assessments

1266 words - 6 pages “The European Union (EU) Parliament mandated the adoption of IFRS to improve the integration of capital markets”(Cormier et. al., 2009) in 2005, and this “adoption has made IFRS the most widely accepted financial accounting model in the world” (Paananen et. al, 2009). Therefore, it is no surprise that the two German auto makers, Daimler and BMW that have been selected for this report follow IFRS, and their two latest annual reports date back to

Financial Management

575 words - 3 pages Phase 1 Discussion Board 2 FINC400-1403B-03 Financial Management Stephen Williams Colorado Technical University Online August 20, 2014 Financial Statements and Analysis The four main financial statements that are utilized on financial statements analysis contain balance sheets, statements of financial positions, the income statements, and statement of operations, statement of change in shareholders equity, and the statements

Financial Management

2464 words - 10 pages CHAPTER 14 FINANCIAL AND OPERATING LEVERAGE Q.1. A.1. Explain the concept of financial leverage. Show the impact of financial leverage on the earnings per share. The use of fixed-charges sources of funds, such as debt and preference capital, along with owners’ equity in the capital structure is known as financial leverage (or gearing or trading on equity). The financial leverage employed by a company is intended to earn more on the fixed charges

Related Essays

Financial Essay 1518 Words

1518 words - 7 pages Rewards and incentives in company have benefits for both employees and employers. When performance and productivity was recognized, employees have increased high morale, job gratification and involvement in business function. However, the best ways to motivate employees is a controversial and complex issue. Incentive and rewards can be both Financial and Nonmonetary. A number of researcher has reported that the key to organization people to

Financial Essay 611 Words

611 words - 3 pages FINA310-1301A-05 Financial Management UNIT 1 IP NASDAQ VS NYSE SHANIKA BUCKNER AIU ONLINE Introduction The purpose of this paper is to inform a group of stock brokers about the NYSE and the NASDAQ. In this paper I will explain the similarities and the differences of the NYSE and NASDAQ stock exchange. Also in my own words, I will explain what the Public Company Accounting and Investor Protection Act of 2002 are for. BODY Although

Financial Essay 1289 Words

1289 words - 6 pages PRINCIPLES OF ACCOUNTING INDIVIDUAL ASSIGNMENT Name: Bùi Xuân Minh Roll ID: 00241 Analyzing 2010 annual financial reports of PVFC Company Entity’s full name Petro Vietnam Fertilizer and Chemicals Company (PVFCCo.) Principal activities The principal activities of the Corporation and its subsidiaries are to produce and do business in fertilizer, liquid ammonia, industrial gas, other chemicals; technical services relating to production

Financial Essay 3645 Words

3645 words - 15 pages Managing financial resources and decisions Part 1 Assignment 1 Task 1 Sources of finance for different businesses Different sources of finance are given for, old, large small etc organizations. Type | Cost | Payback Terms | Sizes | Advantages | Disadvantages | Personal Savings | No cost | None |   | Easy, cheap | Risk of Loss | Friends & Family | Usually good rate or none | Very flexible |   | Flexible, best value | Can create friction