Risk-return Properties of Selected Mutual Funds and Your Portfolio

Randomly choose four mutual funds that are listed on the Dhaka Stock Exchange (DSE) and collect their daily market prices (or return index) for at least 3 years. Also collect daily data (price/return index and market capitalization) over the same period for a group of 15 random stocks from the market and a comparable Bangladesh risk-free rate. Based on your analysis, comment on the risk-return properties of your chosen mutual funds relative to each other and to your portfolio of chosen stocks. If you had 3 clients Ms X, Y and Z having risk- aversion coefficient values of 2, 4 and 6, respectively, which investment (among the funds and your portfolio) would you recommend for each of them?

Notes: For general guidelines on report format, please consult Course Outline. The dataset provided is from Thomson Reuters Eikon and this source should be duly acknowledged in your report. I would suggest you to use return index (RI) for funds and stocks (rather than price) to calculate monthly returns. Calculation of monthly returns on funds and your portfolio may proceed as follows: = ln(price or RI today t / price or RI yesterday t-1)*100 or = ((price or RI today price or RI yesterday t-1) / price or RI yesterday t-1)*100