Industrial analysis always looks forward to analyze the things in a perfect and well organized manner. Industry analysis means to analyze the whole industry in which different companies relating to a single industry would be dominated, analyzed and count (MAHAJAN 2009). Though there are number of industries currently found in the entire world and every industry has its own recognition and importance in a broad nutshell (MAHAJAN 2009). Portfolio management is one of the most important parts of finance and it could be quite vital for many reasons in total (John L. Maginn 2010). The main theme of this paper also surrounds in front of the same. Part-A Performance management is one of the most basic and important things from the standpoint of an organization and every organization have to adopt number of things in total, merely to increase the shareholder’s belongings. Performance of companies, stocks and countries would be initiated through different mediums in total. There are different countries have been given which predominantly are, Australia, Singapore and Honk Kong which have been selected for the analytical purpose. a) Performance of the Countries The countries which have been selected for the same, Australia (AORD) Singapore (STI) Hong Kong (HIS) Average Index AORD/STI/HIS of 5 Years Average AORD/STI/HSI Rate of 5 Years AORD 1344.14339 0.473092048 STI 2772.359153 0.305254992 HSI 20398.48153 0.157578297 According to the mean performance indicator, it is found that the average figure of HSI or Hong Kong is comparatively higher than other two countries. It is higher for Singapore as well, manifesting a rate of 2772 while it is 1344 for AORD. The average increment or decreasing rate of AORD is the highest which is 0.47%, while it is 0.30% and 0.15% for Singapore and Hong Kong respectively. From HSI aspect, it is found that the performance of Hong Kong is better than other two countries. b) Geometric and Arithmetic mean of Return In HSI section, geometric and arithmetic mean of the countries would have been computed accordingly. In this part we have calculated geometric and arithmetic mean of Australia, Singapore and Hong Kong and it is computed in the below mention table. Arithmetic Mean Annualized Geometric Mean Annualized AORD 5.64 8.16 STI 3.6 6.6 HSI 1.8 4.68 The Arithmetic mean of Australia is 5.64% on yearly basis while it is 3.64% and 1.8% for Singapore and Hong Kong respectively. In comparison to that, geometric mean is also mirroring the same results as geometric mean of Australia is higher than of Singapore and Hong Kong, manifesting a figure of 8.16% while it is 6.6% and 4.68% for Singapore and Hong Kong respectively. From the analysis, it is found that the geometric mean is higher than that of Arithmetic mean. Arithmetic mean analyzes mean return of all the countries and according to that computation, the arithmetic mean as well as the geometric mean of Australia is combatively higher than that of the returns of Singapore and Hong Kong respectively. This analysis further reveals that the chance of investment return is on the higher side by investing in Australia as compare to other two countries. C) Variance and Standard Deviation: Standard deviation and variance are two strongly related measures. These measures are used to calculate different variation which is discussed in many studies, statistics classes and journals. They are two basic and important concepts in statistics
Introduction Accounting and finance always define somewhat different things in total because the applicability of the same could not be matched with any other thing (Frank K. Reilly 2011). Accounting is the name of recording and interpreting the data from different standpoints and there are numerous things that come under the ambit of the same…
The absolute return refers to the portfolio returned after sometime. Relative performance describes the difference between absolute return and the market performance. Relative performance enhances the measurement of performance of the actively managed funds with higher returns than the market (Brown & Kapadia 2007, p.
The companies selected for the purpose of research are Apple Incorporation from the Information Technology sector, Pfizer Incorporation from the pharmaceutical sector, Citigroup Incorporation from the Banking sector, Chicago Bridge & Iron from the Infrastructural sector, and General Motors from the automotive sector.
The author states that Morris Capital is a professional investment that presents financial guidance and the distribution of financial and risk products to local personnel and corporations who realize the need to build their wealth and establish equitable plans for the future expectations. It has developed speedily in a highly competitive market.
The risk aversion coefficient points out the extent to which an investor is risk averse. A higher value suggests that the investor will always tend to make less risky investments. A risk aversion coefficient of 1 implies less risk
Moreover, portfolio is regarded as a process through, which investor can diversify their allocation of budget in different securities that will help them to minimize the possibility of risk while investing in single
itz in 1990 discussed that the position of portfolios risk would be reduced and the expected rate of return would be improved if investments having dissimilar price movements are combined. In other words, Markowitz explained how one could best assemble diversified portfolio and
Calculate the annualised mean return, standard deviation and correlation of the stocks. (5 marks)
d.) Calculate the expected return and standard deviation of this minimum variance portfolio (MVP). Plot the
It is the upper portion of the minimum variance frontier starting the minimum variance portfolio. The minimum variance portfolio (mvp) is the portfolios that provides the lowest variance (standard deviation) among all possible
5 pages (1250 words)Assignment
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