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Suppose that you are a security analyst working for an Asset Management Company. You use Capital Asset Pricing Model for making recommendation to your clients
Suppose that you are a security analyst working for an Asset Management Company. You use Capital Asset Pricing Model for making recommendation to your clients who trade in Bursa Malaysia Berhad. In order to recommend to your clients do the following:
- Using technical indicator, moving average method, identify 5 stocks traded at Bursa Malaysia Berhad. (2)
- Forecast their returns using scenario analysis. (2)
- Estimate expected return, standard deviation and alpha for each of the 5 stocks. (2)
- Plot the 5 stocks on SML and determine the undervalued and overvalued securities. (2)
- Identify and justify which stocks you will recommend to your clients who want to add this stock to a well diversified portfolio. (1)
- Also, identify and justify which particular stock you will recommend to your clients who want to add this stock to a single stock portfolio. (1)
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