You are required to choose 2 public listed companies in Bursa Malaysia. You are going to make an estimate of the fundamental value of both companies and use price projections based on Present Value of Cash Flows (PVCF) and Relative Valuation Techniques. Compare your estimates of stock value to the current actual stock price. Make a prediction about whether the stock is underpriced or overpriced (i.e. whether you should buy it or short it). Then you are required to collect the stocks' month-end prices for the latest 60 months to compute monthly percentages of price returns. You are required to create an optimal portfolio of stocks. (You may refer to reference book, Reilly/Brown, pg. 180-187). (Hint: you can refer to The Edge Malaysia tabloid to choose good fundamental stocks) Report/Analysis: (a) Fundamental and financial background of chosen stocks (10 marks) (b) Estimate the intrinsic value of both stocks, i.e. DDM; FCFE; FCFF; P/E ratio; etc. (30 marks) (C) Risk and return of individual stocks: (20 marks) i. Expected returns ii. Variance and standard deviation of returns iii. Covariance of returns iv. Correlation coefficient of returns (d) Expected risk and return of portfolio: (20 marks) i. Expected returns of portfolio ii. Standard deviation of portfolio (e) Efficient frontier (10 marks) (f) Comments and recommendations (10 marks) You are required to choose 2 public listed companies in Bursa Malaysia. You are going to make an estimate of the fundamental value of both companies and use price projections based on Present Value of Cash Flows (PVCF) and Relative Valuation Techniques. Compare your estimates of stock value to the current actual stock price. Make a prediction about whether the stock is underpriced or overpriced (i.e. whether you should buy it or short it). Then you are required to collect the stocks' month-end prices for the latest 60 months to compute monthly percentages of price returns. You are required to create an optimal portfolio of stocks. (You may refer to reference book, Reilly/Brown, pg. 180-187). (Hint: you can refer to The Edge Malaysia tabloid to choose good fundamental stocks) Report/Analysis: (a) Fundamental and financial background of chosen stocks (10 marks) (b) Estimate the intrinsic value of both stocks, i.e. DDM; FCFE; FCFF; P/E ratio; etc. (30 marks) (C) Risk and return of individual stocks: (20 marks) i. Expected returns ii. Variance and standard deviation of returns iii. Covariance of returns iv. Correlation coefficient of returns (d) Expected risk and return of portfolio: (20 marks) i. Expected returns of portfolio ii. Standard deviation of portfolio (e) Efficient frontier (10 marks) (f) Comments and recommendations (10 marks)