Kingfisher School of Business and Finance

Lucao District, Dagupan City

BDO Unibank, Inc.

Ayala Land, Inc.

SM Investment Corporation

Members:

Dela Cruz, Jia Jelina M.

Escosio, Julla Agnes C.

Fernandez, Alessandra Julia S.

Kivin B. Bernabe

Instructor

March, 2020
 We considered investing in three different stocks. These stocks are BDO
Unibank, Inc., Ayala Land, Inc. and SM Investment Corporation.

BDO Unibank, Inc.

Year Beginning Ending Actual Return

2015 109.80 105.00 -4.37%

2016 105.00 112.10 6.76%

2017 112.10 164.00 46.30%

2018 164.00 130.80 -20.24%

2019 130.80 158.02 20.81%

2020 158.02 136.74 -13.47%

2015 2018

105.00  109.80 130.80  164.00

= - 4.37%. = - 20.24%
109.80 164.00

2016. 2019

112 .10  105.00 158.02  130.80

= 6.76%. = 20.81%
105.00 130.80

2017. 2020

164.00  112 .10 136.74  158.02

= 46.30%. = - 13.47%
112 .10 158.02

Ayala Land, Inc.

 Year Beginning Ending Actual Return

2015 33.70 34.45 2.23%

2016 34.45 32.00 -7.11%

2017 32.00 44.60 39.38%

2018 44.60 40.60 2.04%

2019 40.60 33.02 -18.67%

2020 33.02 47.5 43.85%

2015 2018

34.45  33.70 40.60  44.60

= 2.23% = 2.04%
33.70 44.60

2016. 2019

32.00  34.45 33.02  40.60

= - 7.11%. = - 18.67%
34.45 40.60

2017. 2020

44.60  32.00 47.50  33.02

= 39.38%. = 43.85%
32.00 33.02

SM Investment Corporation

Year Beginning Ending Actual Return

2015 543.00 576.00 6.08%

 2016 576.00 655. 00 13. 72%

2017 655.00 990. 00 51.15%

2018 990.00 917.50 -7.32%

2019 917.50 983.45 7.19%

2020 983.45 736.96 -25.06%

2015. 2018

576.00  543.00 917.50  990.00

= 6.08%. = - 7.32%
543.00 990.00

2016. 2019

655.00  576.00 983.45  917.50

= 13.72%. = 7.19%
576.00 917.50

2017. 2020

990.00  655.00 736.96  983.45

= 51.15%. = - 25.06%
655.00 983.45

2 & 3.

BDO Unibank, Inc.

Year Actual returns

2015 -4.37%

2016 6.76%
 2017 46.30%

2018 -20.24%

2019 20.81%

2020 -13.47%

Total 35.79%

Expected Return:

35.79%
= 5.97%
6

Standard Deviation :

2015- 2020

{( 4.37%  5.97%)^2  (6.76%  5.97)^ 2  (46.30%  5.97%)^2  (20.24%  5.97%)^2  (20.81%  5.97%
6 1

= 24.58%

Coefficient Variation:

24.58%
= 4.12%
5.97%

Ayala land,Inc.

Year Actual returns

2015 2.23%

2016 -7.11%

2017 39.38%

2018 2.04%

2019 -18.67%

2020 43.85%
 Total 61.72%

Expected Return:

61.72%
= 10.29%
6

Standard deviation:

2015 - 2020

{(2.23%  10.29%)^2  (7.11 %  10.29%)^2  (39.38%  10.29%)^2  (2.04%  10.29%)^2  (18.67%  1

6 1

= 25.48%

Coefficient Variation:

25.48%
= 2.48%
10.29%

SM Investment Corporation

Year Actual Returns

2015 6.08%

2016 13.72%

2017 51.15%

2018 -7.32%

2019 7.19%

2020 -25.06%

Total 45.76%
Expected Return:

45.76%
= 7.63%
6

Standard Deviation :

2015 - 2020

{(6.08%  7.63%)^2  (13.72%  7.63%)^2  (51.15%  7.63%)^2  (7.32%  7.63%)^2  (7.19%  7.63%
6 1

= 25.40%

Coefficient Variation:

25.40%
= 3.33%
7.63%

4 & 5.

BDO & Ayala land

Stocks Stocks Portfolio

Year BDO Ayala land BDO&ALI

(ALI) ( 50%BDO × 50%

ALI)

2015 -4.37% 2.23% -1.07%

2016 6.76% -7.11% -0.175%

2017 46.30% 39.38% 42.84%

2018 -20.24% 2.04% -9.1%

2019 20.81% -18.67% 1.07%

2020 -13.47% 43.85% 15.19%

Total 48.76%

2015

(-4.37% × .50) + (2.23% × .50) = - 1.07%

2016

(6.76% × .50) + (-7.11% × .50) = - 0.175%

2017

(46.30% × .50) + (39.38% × .50) = 42.84%

2018

(-20.24% × .50) + (2.04% × .50) = - 9.1%

2019

(20.81% × .50) + (-18.67% × .50) = 1.07%

2020

(-13.47% × .50) + (43.85% × .50) = 15.19%

Expected Return:

48.76%
= 8.13%
6

Standard Deviation:

2015 - 2020 =

{(1.07%  8.13%)^2  (0.175%  8.13%)^ 2  (42.84%  8.13%)^2  (9.1%  8.13%)^2  (1.07%  8.13
6 1

= 18.73%

Coefficient Variation:

18.73%
= 2.30%
8.13
BDO & SM

Stocks. Stocks. Portfolio

Year BDO SM BDO&SM

(50%BDO × 50%
SM )

2015 -4.37% 6.08% .855%

2016 6.76% 13.72% 10.24%

2017 46.30% 51.15% 48.73%

2018 -20.24% -7.32% -13.78%

2019 20.81% 7.19% 14%

2020 -13.47% -25.06% -19.27%

Total 40.78%

2015
 (-4.37% × .50) + (6.08% × .50) =. 855%

2016

(6.76% × .50) + (13.72% × .50) = 10.24%

2017

(46.30% × .50) + (51.15% × .50) = 48.73%

2018

(-20.24% × .50) + (-7.32% × .50) = - 13.78%

2019

(20.81% × .50) + (7.19% × .50) = 14%

2020

(-13.47% × .50) + (-25.06% × .50) = - 19.27%

Expected Return:

40.78%
= 6.80%
6

Standard Deviation:

2015 - 2020

{(.855%  6.80%)^2  (10.24%  6.80%)^ 2  (48.73%  6.80%)^2  (13.78%  6.80%)^2  (14%  6.80%)
6 1

= 24. 33%

Coefficient Variation:

24.33%
= 3.58%
6.80%
ALI & SM

Stocks Stocks Portfolio

Year ALI SM ALI & SM

(50%ALI × 50%SM )

2015 2.23% 6.08% 4.16%

2016 -7.11% 13.72% 3.31%

2017 39.38% 51.15% 45.27%

2018 2.04% -7.32% -2.64%

2019 -18.67% 7.19% -5.74%

2020 43.85% -25.06% 9.40%

Total 53.76%

2015

(2.23% × .50) + (6.08% × .50) = 4.16%

2016

(-7.11% × .50) + (13.72% × .50) = 3.31%

2017

(39.38% × .50) + (51.15% × .50) = 45.27%

2018

(2.04% × .50) + (-7.32% × .50) = - 2.64%

2019

( -18.67% × .50) + (7.19% × .50) = - 5.74%

2020

( 43.85% × .50) + (-25.06% × .50) = 9.40%

Expected Return:

53.76%
= 8.96%
6

Standard Deviation:

2015 - 2020

{( 4.16%  8.96%)^ 2  (3.31%  8.96%)^ 2  (45.27%  8.96%)^ 2  (2.64%  8.96%)^ 2  (5.74%  8.96%
6 1

= 18.57%

Coefficient Variation:

18.57%
= 2.07%
8.96%

In conclusion, we rather invest in a portfolio than to a single stock because as a

risk averse regardless of the risks that we may encounter in the business world, we are
looking at the potential gain from our investment. Based on our observation, we pick to
invest at a portfolio of Ayala and SM Corporation because they have the lowest
coefficient variation with a 2.07% compare it when investing in a single stocks of Ayala
with a 2.48% and to SM with a 3.33%. When it comes to their standard deviation, Ayala
and Sm Corporation also have the lowest with 18.57% than to a single stocks of Ayala
with a 25.48% and Sm of 25.40%. Furthermore, the expected return is not that totally
high with 8.96% but as time passes by the most significant thing is that our portfolio
investment through Ayala and Sm Corporation will grow. As a risk averse investor, we
only prioritize the safety of our invested money over the possibility of getting a higher
return. The only important is we have a ready money available to be withdrawn in times
of fortuitous event or even in an emergency situation regardless of the market situation.
We wanted to invest through a basket to protect our liquid assets rather than to invest in
a single stock that cannot protect the capital of ours.