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To form an investment portfolio consisting of the shares of three companies from different sectors (industrial sector, financial sector, services sector,) for any stock exchanges
To form an investment portfolio consisting of the shares of three companies from different sectors (industrial sector, financial sector, services sector,) for any stock exchanges to do the following:
- Collection of financial statements related to the shares of companies selected for the last five years (2015-2019) through annual reports and the stock exchange website.
- Analysis of the expected return and the expected risk per share of these companies individually first and then to the portfolio of shares of these companies, with the amount invested in this portfolio of 100,000 $ distributed equally, knowing that the correlation coefficient between these shares is 85%.
- Discuss the results of the analysis critically based on the principle and concept of return and risk in investments whether the results of the shares individually or the portfolio
- Compare the results of the portfolio formed with the market portfolio which has a return of (8%) Risk (1.5%), advising investors of any portfolio should invest (the new portfolio formed or the market portfolio) with the justification of the answer.
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