FIN5PMT Portfolio Management Theory

Department of Economic and Finance

Latrobe Business School

Latrobe University

Mini-assignment II

Student Name..........................., Student ID, .................................

Due date: May 08 2020 by 11.59 pm

Objectives:In this lesson you will continue to look-up information about listed companies.The financial information provided by Yahoo Finance and other internet websites will help you in formulating and implementing your investment strategy for the Investopedia Stock Simulation Game.

Part I: Below is a typical stock quote from a typical stock table:

HSBC Holdings (HKSE: 0005.HK)

Last Trade

Aug.11, 11.44 am: 74.65

Change

1.85 (- 1.42%)

Prev Cls

76.5

Volume

29,311,831

Div Pay.

N/A

Day's Range

74.5 - 75.3

Bid: 74.65

Ask: 74.70

Open

75.10

Avg. Vol. (3 mos.)

27,736,358

Ex-Div

2016-10-20

52-week Range

53.85 - 79.55

EPS (ttm)

0.54

P/E (ttm)

137.53

Mkt. Cap.

1.45 T

DPS (2016)

0.4

Board Lot

400

Volatility

N/A

Beta

0.85

Book NAV

175.386 B

Div Yield

5.06%

Note: ttm means trailing twelve months

Volatility is measured as [(52wk highest price - 52wk lowest price)/current price]x100

Required:

1.What is the name of the stock exchange where HSBC Holdings was traded according to the above table?

2.How much would you have to pay for one board lot of HSBC Holdings if you bought the stock at 9:44 am on August 11^th?

3.What was the closing price for HSBC Holdings on August 10^th?

4.How many shares of HSBC Holdings were traded since the market opened on August 11^th?

5.How many shares of HSBC Holdings were traded on average over the past three months?

6.How much did HSBC Holdings earn per share in the last year?

7.According to the table, if you bought 400 shares of HSBC Holdings at the lowest price of the year and sold at the highest price for the year, how much money would you make?

8.Go to http://finance.yahoo.com and look-up 0005.HK. Under interactive Charts, click-on "+Add Indicator simple moving average (SMA) 20-day".Is HSBC Holdings above or below its 20-day moving average? What about its 50-day moving average?

Print both charts.

9.Who is currently the Chairman of HSBC Holdings?

Part II:

Go to Yahoo! Finance stock quote and look-up Microsoft (MSFT).Click-on the price chart for maximum years.

Required:

1.How many times has Microsoft had a stock split since 1987?

2.If you bought 100 shares of Microsoft in March 13, 1986, how many shares would you have now?

3.Click on the historical prices for Microsoft. What was the actual price per share at the close of trading on March 13, 1986?

4.What was the adjusted closing price on March 13, 1986 for Microsoft?

5.Why do the actual and adjusted prices differ?

6.If you purchased a share of Microsoft at the closing price on March 17, 2010 and sold it at the closing price on March 17, 2020, what would be your geometric rate of return?

7.Compare the geometric rates of return on Spider's versus Microsoft over the 20-year period starting at the close of trading on December 31, 2000 and ending at the close of trading on December 31, 2020.