Portfolio Management Task Case Solution & Answer

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Portfolio Management Task Case Solution

The other part to consider is the performance of a particular stock in the fundamental analysis of a selected industry; it shows that if the internal performance of an industry would tend to increase in terms of higher revenues, assets utilization, and dividend rates; then the stock prices can increase due to high internal performance of the company. Therefore, technical analysis will be easier to evaluate if the fundamental analysis leads to a positive direction.

Investment performance due to luck or skill/careful analysis

Under the current scenario, if the investment has been made under the control of market researchers then the analysis would be more preferable to shareholder dues to managementâ€™s expertise of share. Which provide in-depth knowledge in order to know the expected gain/loss against the investment of portfolio. On the other side, if the sudden economic changes is made then the researcher has no control over the skilful analysis of an investment. Thus, only

Exhibits

Passive Portfolio		Â	Â	Â	Â
Â	Alpha	Beta	CAPM	Sharp ratio	Average return
Glaxo	0.020816849	0.898740348	0.98%	Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (0.02024)	1.04%
Uni Co	-0.05137568	2.386204651	-1.79%	Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (0.06686)	-0.46%
Amazon	-0.01234072	0.108104491	0.28%	Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (0.00444)	-1.54%
Berkshire	-0.00019718	1.000272808	-0.97%	Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (0.00004)	-0.96%
Apple	-0.0067584	1.037637029	-0.88%	Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (0.00411)	-0.83%
Alphabet	0.001571091	1.035295521	-0.94%	Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (0.00109)	-0.89%
Standard Pacific	-0.03448869	0.745084662	4.67%	Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 0.01322	6.10%
NVIDIA	-0.06920092	1.236178349	2.02%	Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (0.05992)	1.73%
HC Capital	-0.10520315	2.89020948	-1.95%	Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (0.07228)	-0.35%
Starbucks	-0.01457776	0.425432073	-0.77%	Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (0.02532)	-2.48%
NASDAQ	-0.23601798	1.04113863	-0.75%	Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (0.03830)	-0.70%
Expected return against the market					0.66%
Â				Investment	500000
Â				Profit rates per month	Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 3,308
Â				Profit rates per day	Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 110.26

Active Portfolio	Â	Â	Â	Â	Â
Â	Alpha	Beta	CAPM	Sharp ratio	Average return
Glaxo	-1.22633381	1.405080183	-0.48%	Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (0.11)	-0.20%
Uni Co	2.910538252	4.354798645	-1.57%	Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (0.18)	0.02%
Amazon	-0.06012355	1.092651186	-0.61%	-0.009212355	-0.52%
Berkshire	0.002190103	1.000412349	0.03%	-3.65851E-05	0.03%
Apple	-0.05781883	1.268438195	-0.33%	-0.004410031	-0.15%
Alphabet	0.029460357	0.978035027	-0.51%	-0.006442667	-0.53%
Standard Pacific	-1.42848695	1.192863066	-0.31%	-0.180080522	-0.18%
NVIDIA	-0.85787167	1.155403898	-0.05%	-0.168921338	0.03%
HC Capital	-5.18175542	1.252277679	-0.22%	-0.23298687	-0.07%
Starbucks	0.224340786	1.458278572	-0.34%	-0.025682699	-0.08%
NASDAQ	0.256470037	1.227993237	-0.75%	-0.09471279	-0.52%
Expected return against the market					-2.18%
Â				Investment	500000
Â				Profit rates per month	Â Â Â Â Â Â Â Â Â Â Â Â Â Â (10,880)
Â				Profit rates per day	Â Â Â Â Â Â Â Â Â Â Â Â Â Â (362.67)

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Portfolio Management Task Case Solution & Answer