BUS -422 : Security Analysis and portfolio Management

Assignment Instructions
1. First provide a brief description of your portfolio by detailing the reasons for a) Sector
selection b) Security selection within each sector and lastly, c) capital allocation in each
security ( % of allocation in each sector).
2. In second part, describe your portfolio performance using graphs and tables. The
following graphs and tables are required

i) Ups and downs of your security prices. (Line graph)

ii) Ups and downs of your security return. (Line graph)
iii) Security weight table with a pie chart.

3. Calculate the following for individual securities and portfolio

i) Expected return
ii) Variance
iii) Standard deviation

Look at the following YouTube videos to calculate the above. Its very easy.

https://www.youtube.com/watch?v=f9gTc_IozIU

https://www.youtube.com/watch?v=kpS6rIzwfzk&t=12s

Note: You don’t need to rearrange you data from latest to oldest. Keep as it is. The first
video will show you how.

4. Now consider, you want to invest some amount on risk free asset. Use, US t-bill as
benchmark for risk free rate. As for Rm( Market rate) use 8.10 % as this is the avegare
return in S&P500. Then calculate the following
i) Expected return of individual securities and portfolio based on CAPM
ii) Sharp ratio then draw the capital allocation line.
iii) Calculate the weights for optimal risky portfolio for your choice of risk aversion level
“A”.
5. After 29th April, Take the value of the stock again and make a comparison with actual
portfolio return and previously calculated expected return.
6. Conclusion and Recommendation.

The report should be completed in professional manner. Use color print for graphs.

Good Luck
We have invested 1 million USD in NYSE about 1 year ago (23rd March, 2020). We invested in
5 sectors including 3 securities in each sector which makes 15 securities in total. So after taking
the actual value of the 29th April of those securities we can see that our actual value of those
securities became $2837186.77 against the actual volumes of share 44893 which we brought a
year ago the actual investing value then was $1000062.963. So as you can see during the
pandemic we still have made almost 2.5 times money. Where we expected to have a minimum
return of the total portfolio was 6.13%. So surely our price of the portfolio has increased in such
a promising way that we have made enough profit with our investment.