Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Create an Investment Portfolio for the following companies Gullies Ltd, Smear fund and Claire Ltd given the following share prices determine which companies you will

Create an Investment Portfolio for the following companies Gullies Ltd, Smear fund and Claire Ltd given the following share prices determine which companies you will buy, sell or dispose shares and give a reason as to why the decision was made.

Buying and selling of shares will be based on every THURSDAY closing prices. Assume the following;

  • The cost of opening an account is Kes 1,200
  • Account monthly maintenance fee is Kes. 100.
  • The minimum number of shares you can buy from each stock at a time is 100

Consider a transaction fee of 2 % and 1.8% for transactions worth less than Kes. 100,000 and Kes.100,000 and more, respectively for any purchase or sale of shares.

Date

Gullies Ltd Smear fund Claire Ltd

20/5/2021

38.90

40.55

360

27/5/2021

40.35

42

360

3/6/2021

41

42

380

10/6/2021

41.25

42.85

380

17/6/2021

41.60

42.55

380

24/6/2021

40.95

43.65

405

1/7/2021

42

42.50

405

8/7/2021

41.40

45.50

405

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Complacency And Collusion A Critical Introduction To Business And Financial Journalism

Authors: Keith J. Butterick

1st Edition

074533203X,1849648379

More Books

Students also viewed these Finance questions

Question

What is the role of ownership in risk management?

Answered: 1 week ago