Report on

Optimal Portfolio Under Markowitz Model of

Pharmaceutical Industry
Course Code: F-407
Course Title: Research Methodology

Submitted to:
Papi halder
Lecturer
Dept. of Finance & Banking
University of Barisal
Submitted By:

Group- 03

Session:2018-19(AS:2015-16)
Semester: 4th year 2nd semester
Dept. of Finance & Banking
University of Barishal

Date of Submission: 8th February, 2021

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 Group No-03
Serial No. Members Name ID No.
1. Shuvo Roy 16FIN002
2. Md. Rakibul Islam 16FIN007
3. Dipto Kumar Biswas 16FIN038
4. Kanchi Khatun 16FIN040
5. Md. Zahidul Islam 16FIN041
6. Rafiqul Islam 16FIN054
7. Mahabina Aktar Sumona 14FIN011
8. Sumaya Akter 14FIN076

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 Letter of Transmittal
08th February, 2021

Papi Halder

Lecturer,

Dept. of Finance and Banking

University of Barisal

Subject: Submission of report on “Optimal Portfolio Under Markowitz Model on

Pharmaceutical Ltd."

Dear Madam,

With due respect, we would like to inform you that, we have submitted our Report on “Optimal

Portfolio Under Markowitz Model on Pharmaceutical Ltd." as per your instruction. We hope this

report will be informative as well as comprehensive. We have found the study to be quite

interesting, beneficial & insightful. We have tried our level best to prepare an effective &

creditable report. Here we have gathered information through different sources such as websites

and respondents.

We also want to thank you for your support and patience for us and we appreciate the opportunity

provided by you through assigning us to work in this thoughtful project.

Yours faithfully,

Dipto Kumar Biswas

On behalf of group no: 03

Dept. of Finance and Banking

University of Barisal

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I
 Acknowledgement

There is an English proverb “Two heads are better than one’’

which means no one can obtain a noble objective alone. This

report is an accumulation of many people’s endeavor. At the very

beginning we would like to convey our sincere appreciation to

the almighty God for giving us the strength and the ability to

finish the task within the planned time, and then we like to

express our sincere gratitude to our respectful course teacher Papi

Halder who contributed towards preparing and making this report

successfully. We would also like to thank the respondents. for

providing us necessary information.

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 Preface

This is high time for us to convey our deepest gratitude and sincere
submission to the almighty for giving us the opportunity to accomplish
such an important task of preparing a report.
We convey our heartfelt thanks to our honorable teacher Papi Halder for
her suggestion and enthusiasm bringing words at every time during the
preparation of this report.
We have given our best effort to prepare and represent the report
according to instruction of our honorable teacher. We hope our endeavor
will be beneficial to the audience and urge for exonerate eye for any
mistake or error found in the report.
 Table of contents
Title Page no.
Executive Summary 1
Origin of the report 2
Objective of the report 2
Limitation of the report 2
Methodology 3
Scope of the report 4
Chapter One (Introduction and overview of the companies) 5
1.1 Introduction 6
1.2 Overview of the companies: 7-8
Chapter Two (Analysis of the Companies) 9
2.1 Markowitz Model 10
2.2 Sharpe’s Single Index Model 10
2.3 Portfolio Performance Evaluation 11
2.3.1 Sharpe Ratio 11
2.3.1 Treynor Ratio 12
2.3.3 Jensen’s Alpha 12-13
2.4 Computation of portfolio according to Markowitz Model 14
2.4.1 Optimal portfolio construction under Markowitz Model 14
2.4.2 Determining Cut-off Rate under Single-Index Model (SIM) 15
2.4.3 Optimal portfolio under Single Index Model 15
2.4.4 Optimal Portfolio Construction under Correlation Model 16
Portfolios Performance Evaluation under various models 16
2.5.2 Ranking of Portfolios by Performance Measure 17

Chapter Three (Findings and Conclusions) 18

3.1 Findings 19
3.2 Conclusions 19
3.3 References 19