1. You have an insurance policy that just matures at a value of $5 000 000. You decided to use this money to further invest on the Jamaica Stock Exchange Market.

You have decided to take the following instructions toward creating an investment portfolio:

A. Go to the Jamaica Stock Exchange websites and select THREE (3) stocks; retrieve the daily stock prices for each stock for the period September to October 2020.

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

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.

C. Using the average prices computed from the table in task 1, compute the following:

i. the average returns (arithmetic mean) for each stock ii. the standard deviation for each stock

D. Calculates the coefficient of variation for each of the stocks.

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

F. You are to create a portfolio from the stocks you have selected; 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 ii. calculate the expected returns of the portfolio iii. calculate the covariance between the assets iv. calculate the risk/standard deviations for the portfolio

G. Explain why correlation between stocks is important. Using appropriate technology, graph the correlation of the THREE (3) assets.

H. Assess your wealth after the two months and evaluate whether you would have changed your portfolio. State what you would have done differently to improve the portfolio performance.

2. Also, to be included in your project:

i. Introduction ii. Conclusion iii. References iv. All workings must be clearly shown. Use appropriate graphs and diagrams to represent your results, where possible. v. Individual statement