Investment Management Project

Investment Management Page 1 of 3

Project

Investment Management

Lecturer: Ms. Denese Sterling

E-mail: [email protected]

Due date (Project): Friday 16th December 2022

Your client has an insurance policy that just matured at a value of $500 000. She has decided to

use this money to further invest on the Barbados Stock Exchange Market (BSE).

Along with the company analyzed for your individual assignment, you are required to adhere to

the following instructions toward creating an investment portfolio for Ms. Shurma Greenvale:

A. Go to the Barbados Stock Exchange Market (BSE), select TWO (2) other stocks for Ms.

Greenvale’s portfolio and retrieve the daily stock prices for each stock for the period

September 04th to October 29th, 2022;

i. Prepare a table/schedule showing average stock price per week for EACH stock.

(8 marks)

B. Give a brief background to EACH company and use information extracted from their

financial statements plus any other current information to say why those companies were

chosen.

(9 marks)

C. Using the average prices computed from the table under task A compute the following:

i. The average returns (arithmetic mean) for each stock (8 marks)

ii. The standard deviation for each stock (12 marks)

D. Calculates the coefficient of variation for each of the stock. (6 marks)

Investment Management Page 2 of 3

E. Explain the efficient frontier as a tool that is used by investors to make investment

decisions.

(4 marks)

F. You are to create a portfolio from the stocks you have selected and invest 100% of funds

in the portfolio. You are now required to:

i. Weight your funds to the various stocks in the portfolio and explain why the

weighting was selected. Show weight and money value allocated to stocks in the

portfolio

(3 marks)

ii. Calculate the expected returns of the portfolio (3 marks)

iii. Calculate the covariance between the assets (6 marks)

iv. Calculate the risk/standard deviations for the portfolio (4 marks)

G. Explain why correlation between stocks is important. (2 marks)

H. Assess Ms. Greenvale’s wealth after the two months and evaluate whether you would have

changed her portfolio. State what you would have done differently to improve the portfolio

performance.

(5 marks)

N.B. Also, to be included in your project:

1. Introduction (2 marks)

2. Conclusion (2 marks)

3. References (2 marks)

4. All workings must be clearly shown. Use appropriate graphs and diagrams to represent

your results, where possible. (2 marks)

5. Individual statement (2 marks)

Investment Management Page 3 of 3

GUIDELINES FOR PROJECT

The following governing conditions apply to the typed project:

 The Cover page is to include the following in the order specified:

1/ Name of Education Institution (at top of page)

2/ Title of Course and Course code 3/ Name of Students and ID numbers

4/ Title of Project 5/ Date submitted

6/ Name of Lecturer.

 APA FORMAT

 Font Size: 12 pt.

 Font Style: Times New Roman

 Spacing: 2.0

 Word Limit:

 Your References must be included (Wikipedia is not to be used as a Reference).

 You are required to submit 1 hard copy to the Lecturer at the office AND e-mail 1 soft- copy

to the Lecturer at [email protected]

This assessment is worth 20% of your total marks and must be done within the deadline

specified. Failure to do so will result in an automatic grade of zero. Plagiarism, improper

documentation and blatant careless incorrect grammar and spelling will be penalized by the

loss of 2.5 marks of your grade in each case.

End of Assignment