BBF305/03 INVESTMENT AND PORTFOLIO MANAGEMENT

1. Access the monthly stock price for the Petronas Chemicals Group Berhad and Sime Darby Berhad companies, together with FBM KLCI for the last 10 years. For each stock, calculate: (i) Average yearly rate of return (ii) Standard deviation (iii) Beta

Assume a portfolio of the two selected stocks with equal weightage, calculate: (iv) Portfolio return (v) Portfolio risk.

2. Determine the selected stocks intrinsic value by applying Dividend Discount Model (DDM) OR Price-to-Earnings (P/E) method. Show and explain your method in determining risk-free rate, required rate of return, growth rate, and P/E.

3. Discuss the applicability and suitability of DDM or P/E in determining intrinsic value of the selected stocks.

4. Report structure in appropriate format with relevant tables, diagrams, figures, charts and reference list.