BBMF 2063 INVESTMENT AND FINANCIAL ANALYSIS

BACHELOR OF BUSINESS (HONS) FINANCE & INVESTMENT

YEAR 2 SEMESTER 3
COURSEWORK

CHEW CHIN LAP

13WBR11861

NICHOLAS TAN PENGXI

13WBR10039

VICTOR HO KAI SHENG

13WBR12255

YANG QI ONN

13WBR10443

TUTORIAL GROUP

RFI 4

DAY

WEDNESDAY

TIME

4.00PM

DATE OF SUBMISSION

16 JULY 2014
1

School of Business Studies

Plagiarism Statement

Read, complete and sign this statement to be submitted with your written work.
We confirm that the submitted work are all our own and are in our own words.

1.

Name (Block Letters)

CHEW CHIN LAP

ID No.
13WBR11861

2.

NICHOLAS TAN PENGXI

13WBR10039

3.

VICTOR HO KAI SHENG

13WBR12255

4.

YANG QI ONN

13WBR10443

5.
6.

Programme

Tutorial Group

Date

Signature

Group Member Appraisal Form

This basis of this evaluation is your group members commitment to completing the assignment and
to their regard for other members of the group. It should be based on the contribution given by each
member and his or her involvement in this assignment.
Group members should be appraised using the following basis:
100% o Group member attended all group meetings or if unable to attend, contacted the
group in advance and came to an alternative arrangement that the majority of group
members were happy with.
o Group member contributed to group discussion.
o Group member always offered to help or volunteered for tasks.
o Group member had assigned tasks completed on time.
50% o Group member missed group meetings without making alternative arrangements
with other group members.
o Group member assigned tasks were only partly completed or poorly completed.
o Group member did not contributed to the group effort or volunteer for tasks.
0%
o Group member attended few meetings and made no contribution to the assignment.
Name of student: CHEW CHIN LAP
ID: 13WBR11861
Instructions:
Place the name of each of the members in your group in the space provided below. Appraise each of
the members in your group by circling one of the totals shown below (i.e. 100%, 50% or 0%)
Group Member
1. NICHOLAS TAN PENGXI

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50%

0%

2. VICTOR HO KAI SHENG

100%

50%

0%

3. YANG QI ONN

100%

50%

0%

4.

100%

50%

0%

5.

100%

50%

0%

6.

100%

50%

0%

Note: Failure to submit a Group Member Appraisal Form will result in a ZERO appraisal being
recorded against your name.

Group Member Appraisal Form

This basis of this evaluation is your group members commitment to completing the assignment and
to their regard for other members of the group. It should be based on the contribution given by each
member and his or her involvement in this assignment.
Group members should be appraised using the following basis:
100% o Group member attended all group meetings or if unable to attend, contacted the
group in advance and came to an alternative arrangement that the majority of group
members were happy with.
o Group member contributed to group discussion.
o Group member always offered to help or volunteered for tasks.
o Group member had assigned tasks completed on time.
50% o Group member missed group meetings without making alternative arrangements
with other group members.
o Group member assigned tasks were only partly completed or poorly completed.
o Group member did not contributed to the group effort or volunteer for tasks.
0%
o Group member attended few meetings and made no contribution to the assignment.
Name of student: NICHOLAS TAN PENGXI
ID: 13WBR10039
Instructions:
Place the name of each of the members in your group in the space provided below. Appraise each of
the members in your group by circling one of the totals shown below (i.e. 100%, 50% or 0%)
Group Member
1. CHEW CHIN LAP

100%

50%

0%

2. VICTOR HO KAI SHENG

100%

50%

0%

3. YANG QI ONN

100%

50%

0%

4.

100%

50%

0%

5.

100%

50%

0%

6.

100%

50%

0%

Note: Failure to submit a Group Member Appraisal Form will result in a ZERO appraisal being
recorded against your name.

Group Member Appraisal Form

This basis of this evaluation is your group members commitment to completing the assignment and
to their regard for other members of the group. It should be based on the contribution given by each
member and his or her involvement in this assignment.
Group members should be appraised using the following basis:
100% o Group member attended all group meetings or if unable to attend, contacted the
group in advance and came to an alternative arrangement that the majority of group
members were happy with.
o Group member contributed to group discussion.
o Group member always offered to help or volunteered for tasks.
o Group member had assigned tasks completed on time.
50% o Group member missed group meetings without making alternative arrangements
with other group members.
o Group member assigned tasks were only partly completed or poorly completed.
o Group member did not contributed to the group effort or volunteer for tasks.
0%
o Group member attended few meetings and made no contribution to the assignment.
Name of student: VICTOR HO KAI SHENG
ID: 13WBR12255
Instructions:
Place the name of each of the members in your group in the space provided below. Appraise each of
the members in your group by circling one of the totals shown below (i.e. 100%, 50% or 0%)
Group Member
1. CHEW CHIN LAP

100%

50%

0%

2. NICHOLAS TAN PENGXI

100%

50%

0%

3. YANG QI ONN

100%

50%

0%

4.

100%

50%

0%

5.

100%

50%

0%

6.

100%

50%

0%

Note: Failure to submit a Group Member Appraisal Form will result in a ZERO appraisal being
recorded against your name.

Group Member Appraisal Form

This basis of this evaluation is your group members commitment to completing the assignment and
to their regard for other members of the group. It should be based on the contribution given by each
member and his or her involvement in this assignment.
Group members should be appraised using the following basis:
100% o Group member attended all group meetings or if unable to attend, contacted the
group in advance and came to an alternative arrangement that the majority of group
members were happy with.
o Group member contributed to group discussion.
o Group member always offered to help or volunteered for tasks.
o Group member had assigned tasks completed on time.
50% o Group member missed group meetings without making alternative arrangements
with other group members.
o Group member assigned tasks were only partly completed or poorly completed.
o Group member did not contributed to the group effort or volunteer for tasks.
0%
o Group member attended few meetings and made no contribution to the assignment.
Name of student: YANG QI ONN
ID: 13WBR10443
Instructions:
Place the name of each of the members in your group in the space provided below. Appraise each of
the members in your group by circling one of the totals shown below (i.e. 100%, 50% or 0%)
Group Member
1. CHEW CHIN LAP

100%

50%

0%

2. NICHOLAS TAN PENGXI

100%

50%

0%

3. VICTOR HO KAI SHENG

100%

50%

0%

4.

100%

50%

0%

5.

100%

50%

0%

6.

100%

50%

0%

Note: Failure to submit a Group Member Appraisal Form will result in a ZERO appraisal being
recorded against your name.

Coursework Assessment
ASSESSMENT CRITERIA

MARKS

i) Background of the 2 companies.

ii)
-

20%

Correct calculation for the following:

Yearly rate of return
Standard deviation
Portfolio return
Portfolio risk

10%
10%
10%
10%
20%

iii) Analysis on the portfolio selection of the

two companies.
iv) Overall presentation and quality of work

10%

v) Group Contribution (Based on Group

10%

Member Appraisal Form)

TOTAL MARKS

100%

MAKS
AWARDED

TABLE OF CONTENTS

TASK I

9-14

TASK II

15

TASK III

16

TASK IV

17

APPENDIX

18-22

REFERENCES

23-24

TASK I

The three stocks we choose in our portfolio are Fraser and Neave Holdings Bhd, Sime Darby and
PETRONAS Gas Bhd.
Fraser and Neave Holdings Bhd
Fraser and Neave Holdings Bhd (F&N 3689) is a company under consumer products industry
in Bursa Malaysia. Established in 1883 by John Fraser and David Chalmers Neave, it is one of the
oldest companies in Malaysia and its brand is well-recognised in local and oversea markets. The core
business of the company includes manufacture, sale and marketing of soft drinks, dairies, noncarbonated beverages as well as property. Some significant milestones include, the pioneering and
launching of the sweetened condensed filled milk in 1973, launching of a complete range of ice
cream products in 1974, the launch of 100 Plus isotonic drinks in 1984 , and the acquisition of
Nestls canned milk business in Thailand and Malaysia in 2007. In year 2013, the profit after tax of
the company has reached One of the very first products introduced by F&N was aerated water
product.
Today, F&N Beverages Marketing Sdn Bhd (FNBM), a subsidiary company under F&N, is
Malaysias largest soft drinks manufacturer and distributor. FNBMs soft drinks portfolio consists of
well-known brands such as 100PLUS, F&N Fun Flavours, F&N SEASONS, F&N Fruit Tree, F&N
Ice Mountain and the newly-launched OISHI Green Tea. Meanwhile, another major core business by
F&N is dairy products. Over the years, F&N Dairies (M) Sdn Bhd, another subsidiary company
under F&N, has become the leader in the Sweetened Condensed Milk and Evaporated Milk market
in Malaysia. Their product includes F&N, Tea Pot, Carnation, Ideal, Gold Coin, F&N Magnolia,
Farmhouse, Sunkist and Fruit Tree Fresh. At the same time, F&N PROPERTIES SDN BHD is the
subsidiary company that manages the land acquired and held by the company.
Based on Chart 1, the Board of Directors of F&N consists of Tengku Syed Badarudin
Jamalullail who is the chairman of F&N and he is independent and non executive director. There are
total of seven non independent directors and two independent directors. This company is not really
good governance as the number of independent directors are less than non-independent directors.

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Chart 1:Board of Directors of F&N

10

Sime Darby
Sime Darby BHD (SIME 4197) is a trading services company in Bursa Malaysia. The history
of the company started in 1910, when Sime, Darby & Co was set up in Malacca by William
Middleton Sime, Henry dEsterre Darby and Herbert Milford Darby. The very first business of the
company was timber, preservatives and motor insurance. Today, Sime Darby is Malaysias leading
diversified multinational with over 100,000 employees and interests in over 20 countries focusing on
five core businesses namely plantation, property, industrial equipment, motors and energy & utilities,
with healthcare as a growing business. Plantation business is a major strength of the company. Its
subsidiary, Sime Darby Plantation is the world's largest producer of sustainable palm oil and is one
of the worlds largest listed palm oil companies. The company grows oil palms in its estates, harvests
and processes fresh fruit bunches (FFB) in its own mills and refineries, and crude palm oil (CPO)
obtained is further refined into cooking oil and various other oils and fats products.
Besides that, in the industrial field, Sime Darby Industrial, a subsidiary of the company,
offers a comprehensive list of heavy equipment and services, ranging from the sales of new
machines, engines or used equipment for rental through its chain of Car Rental Stores. Currently, it is
the world's fifth largest Caterpillar dealer operating in 14 countries across Asia and Australasia, with
more than 100 branches. Brands of associated heavy equipment carried by the company include
Bucyrus, Case New Holland, Kubota, Terberg, Jacobson, Perkins and Omega. On the other hand, in
motors industry, Sime Darby Motors is one of the major automotive industry and luxury marquees
participants in Malaysia, Singapore, China, Australia and New Zealand, with business activities that
vary from country to country, and includes importation, assembly, distribution and retail of vehicles.
The Division represents various brands and luxury marquees ranging from BMW, Mini, RollsRoyce, Porsche, Jaguar and Lamborghini, to Hyundai, Land Rover, Ford, Peugeot, Mitsubishi and
Ssang Yong. In the property field, Sime Darby Property is an established integrated property group
and one of the leading property developers in Malaysia.
The core businesses of the company are property development, property investment and
hospitality & leisure. It has built 10 townships in the Klang Valley and Negeri Sembilan, namely Ara
Damansara, Subang Jaya, USJ Heights, Putra Heights, Bukit Jelutong, Bandar Bukit Raja, Denai
Alam, Melawati, Nilai Impian and Planters Haven. On the other hand, Sime Darby also gets
involved in energy and utilities industry. Under its subsidiary, Sime Darby Energy & Utilities, the
company has its core businesses in Engineering & Technical Services, Trading Services, Power,
Ports & Logistics and Water Management.
11

Based on Chart 2, the Board of Directors of Sime Darby consists of Tan Sri Dato Abdul
Ghani Othman who is the chairman of Sime Darby and he is independent and non executive director.
There are total of six non independent directors, two independent directors and one senior
independent director. This company have better governance compared to F&N as there is one senior
director although the number of independent directors less than non- independent directors.

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Chart 2: Board of Directors of Sime Darby

12

PETRONAS Gas Bhd

Petronas Gas BHD (PETGAS 6033) is a company under the category of industrial products in
Bursa Malaysia. Incorporated in 1983, the company is addressed as the Malaysias leading gas
infrastructure and utilities company. Petronas has business associates such as MMC-SHAPADU
Holdings and Tokyo Gas-Mitsui Holdings, as well as joint ventures with companies such as Linde
Malaysia Sdb Bhd. and NRG Consortium (Sabah). Throughout the years, the companys business
presence is all around the country. Petronas has four core operations, namely Gas Processing, Gas
Transmission, Utilities and Regasification. Gas Processing and Gas Transmission are closely related
with the former being responsible for processing natural gas piped from PETRONAS offshore fields
while the latter is responsible for transporting the processed gas via the Peninsular Gas Utilisation
(PGU) pipeline network to PETRONAS customers in Malaysia and Singapore. The Utilities plants
supports the gas value chain by supplying industrial utilities to various petrochemical plants
operating in Kertih, Terengganu and Gebeng, Pahang while liquefied natural gas (LNG)
Regasification Terminal facilitates diversification of PGBs business portfolio into Regasification
business to fulfil Malaysias gas demand.
Based on Chart 3, the Board of Directors of Petronas consists of Datuk Manharlal Ratilal who
is the chairman of Petronas and he is non-independent and non executive director. There are total of
three non independent directors, three independent directors and one senior independent director.
This company is a well governance as the number of independent directors more than nonindependent directors.

13

C
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Chart 3: Board of Directors PETRONAS Gas Bhd

14

TASK II

Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013

KLCI
710.7275
855.5375
900.68167
965.6667
1324.649167
1135.789167
1090.344167
1379.38583
1508.88
1610.41
1746.0475

Yearly Stock Price

(F&N)
(PetGas)
3.515
7.2375
4.35167
7.1125
5.379167
7.99583
6.35
8.9333
7.4875
10.104167
8.54167
9.94583
9.4675
9.754167
12.9583
10.3233
17.35
12.5733
18.5967
17.975
18.3467
21.1067

(SIME)
5.1833
5.7167
6.075
6.1375
9.74167
8.304167
7.4525
8.43167
9.025
9.6325
9.44083

Average Yearly Return

Standard Deviation

15

KLCI

Yearly Return
(F&N)
(PetGas)

(SIME)

0.203748976
0.052767023
0.072150908
0.371745771
-0.142573600
-0.040011827
0.265092138
0.093878133
0.067288320
0.084225446

0.238027501
0.236116430
0.180480248
0.179133858
0.140790206
0.108390244
0.368717542
0.338906752
0.071853987
-0.013443269

-0.017271157
0.124194493
0.117248567
0.131063433
-0.015670103
-0.019271052
0.058351132
0.217952858
0.429612937
0.174223459

0.102893891
0.062682216
0.010288066
0.587236931
-0.147562019
-0.102558956
0.131387678
0.070369638
0.067313019
-0.019897915

0.102831129
0.139496607

0.184897350
0.110871221

0.120043457
0.129995930

0.076215255
0.189951596

TASK III

Correlation
Portfolio A (F&N and PetGas)
(F&N)
(PetGas)
(F&N)
1
(PetGas)
0.889028274
1
Portfolio B (F&N and SIME)
(F&N)
(SIME)
(F&N)
1
(SIME)
0.803943462
1
Portfolio C (PetGas and SIME)
(PetGas)
(SIME)
(PetGas)
1
(SIME)
0.732916729
1

Portfolio Return and Risk

Portfolio A (F&N and PetGas)

Portfolio B (F&N and SIME)
Portfolio C (PetGas and SIME)

Portfolio Return, E(r)

0.152470403
0.130556302
0.098129356

16

Portfolio Risk,
0.117066387
0.143384449
0.149311989

TASK IV

Based on the findings in Task II, KLCI has an average yearly return of 10.2831% from year
2003 to 2013. The average yearly returns of F&N, PetGas and SIME are 18.4897%, 12.0043% and
7.6215% and the standard deviation is 0.1108, 0.13 and 0.19 respectively. The average yearly return
for each company highly depends on their business nature and standard deviation is use as a
measurement of risk. F&N has the highest average yearly return with lowest risk mainly because its
a defensive stock as its beverage business will less affected by the market itself. For SIME, it has the
lowest average yearly return with highest risk because of its plantation business which exposed to a
lot of market risk. PetGas which has the average yearly return and risk among three portfolio.
A two securities portfolio is formed with the chosen companies. The portfolio A consists of
F&N and PetGas, portfolio B consists of F&N and SIME , and the portfolio C consists of PetGas and
SIME. Both companies in every portfolio are invested equally.
In order to calculate portfolio risk, correlation of the companies in the portfolio is needed.
The correlation coefficient shows the relationship of the stocks in each portfolio. According to
findings in Task 3, companies in each portfolio have strongly positive relationship. The correlation of
portfolio A, B and C are 0.8890, 0.8038 and 0.7392 respectively. After finding out the correlation of
the companies in every portfolio, it is use to calculate the portfolio risk. The portfolio risk of
portfolio A, B and C are 0.1171, 0.1434 and 0.1493 respectively. The portfolio risk for all portfolios
are consider low as the standard deviation of all portfolios is less than one.
The portfolio return for portfolio A, B and C are 15.2470%, 13.0556% and 9.8129%
respectively. Among the portfolios, portfolio A has the highest portfolio return because the average
yearly returns of F&N and PetGas are the highest among the three stocks. High average yearly return
of a single company will definitely pull up the portfolio return. For portfolio C has the lowest
portfolio return because the average yearly return of PetGas and SIME are lowest among the three
stocks.
With all of the calculation, we have decided to choose portfolio A because it provides the
highest portfolio return with lower portfolio risk compared to portfolio B and C. This is the optimal
portfolio among the three portfolios. (1536 words in total)

17

APPENDIX

Appendix 1 : Monthly stock price of chosen companies and KLCI index

Date
2/12/201
3
1/11/201
3
1/10/201
3
2/9/2013
1/8/2013
1/7/2013
3/6/2013
2/5/2013
1/4/2013
1/3/2013
4/2/2013
2/1/2013
3/12/201
2
1/11/201
2
1/10/201
2
3/9/2012
1/8/2012
2/7/2012
1/6/2012
2/5/2012
2/4/2012
1/3/2012
2/2/2012
3/1/2012
1/12/201
1
1/11/2011
3/10/201
1
2/9/2011
1/8/2011
1/7/2011

KLCI

(F&N)

(PetGas
)

(SIME)

1866.96

18.5

24.18

9.52

1812.72

18.26

23.86

9.65

1806.85
1768.62
1727.58
1772.62
1773.54
1769.22
1717.65
1671.63
1637.63
1627.55

18.62
18.6
18.32
18.3
18.32
18.12
18.24
18.5
18.1
18.28

24.52
22
20.14
20.84
20.9
21.24
19.72
19
18.32
18.56

9.53
9.5
9.39
9.48
9.58
9.42
9.44
9.27
9.21
9.3

1688.95

18.02

19.52

9.52

1610.83

18.52

18.4

8.97

1673.07
1636.66
1646.11
1631.6
1599.15
1580.67
1570.61
1596.33
1569.65
1521.29

19.8
18.2
19.9
19.2
18.06
17.82
19.02
18.88
17.9
17.84

19.6
19
19.38
18.5
18
17.2
16.78
16.84
16.8
15.68

9.78
9.8
9.81
9.83
9.89
9.68
9.74
9.74
9.69
9.14

1530.73
1472.1

18.2
18.16

15.2
13.2

9.2
9

1491.89
1387.13
1447.27
1548.81

17
16.5
16.54
19.3

13.1
12.98
13.22
13.48

8.9
8.44
8.79
9.15
18

1/6/2011
3/5/2011
1/4/2011
1/3/2011
2/2/2011
3/1/2011
1/12/201
0
1/11/201
0
1/10/201
0
1/9/2010
2/8/2010
1/7/2010
1/6/2010
3/5/2010
1/4/2010
1/3/2010
2/2/2010
4/1/2010
1/12/200
9
2/11/200
9
1/10/200
9
1/9/2009
3/8/2009
1/7/2009
1/6/2009
1/5/2009
1/4/2009
2/3/2009
3/2/2009
2/1/2009
1/12/200
8
3/11/200
8
3/10/200
8
2/9/2008
1/8/2008
1/7/2008
2/6/2008

1579.07
1558.29
1534.95
1545.13
1491.25
1519.94

19.4
19.38
17.7
15.62
15.4
15

13.22
11.32
11.26
11.44
11.28
11.18

9.23
9.19
9.02
9.23
8.96
9.19

1518.91

15

11.1

8.8

1485.23

16

11.14

8.68

1505.66
1463.5
1422.49
1360.92
1314.02
1285.01
1346.38
1320.57
1270.78
1259.16

14.48
14.46
14.2
14.38
12.56
11.44
10.78
10.58
10.62
11

11.24
10.9
10.5
10
9.89
9.92
9.97
9.8
9.65
9.77

8.83
8.5
8.35
7.8
8
7.75
8.78
8.71
8.45
8.53

1272.78

10.6

9.87

8.97

1259.11

11.14

9.89

8.97

1243.23
1202.08
1174.27
1174.9
1075.24
1044.11
990.74
872.55
890.67
884.45

10.6
10.32
9.6
9.45
9.55
8.9
8.7
8.25
7.55
8.95

9.78
9.73
9.73
9.8
9.8
9.8
9.4
9.7
9.75
9.8

8.89
8.5
8.25
8.25
6.95
7.2
6.6
5.7
5.65
5.5

876.75

8.85

9.8

5.2

866.14

8.65

9.7

5.85

863.61
1018.68
1100.5
1163.09
1186.57

8.25
9.05
9.05
8.9
9

9.75
9.9
10
9.8
9.95

6.2
6.6
6.8
7.9
9.25
19

2/5/2008
1/4/2008
3/3/2008
1/2/2008
2/1/2008
3/12/200
7
1/11/200
7
1/10/200
7
3/9/2007
1/8/2007
2/7/2007
1/6/2007
3/5/2007
2/4/2007
1/3/2007
2/2/2007
3/1/2007
1/12/200
6
1/11/200
6
2/10/200
6
1/9/2006
1/8/2006
3/7/2006
1/6/2006
2/5/2006
3/4/2006
1/3/2006
3/2/2006
3/1/2006
1/12/200
5
2/11/200
5
3/10/200
5
1/9/2005
1/8/2005
1/7/2005
1/6/2005
3/5/2005

1276.1
1279.86
1247.52
1357.4
1393.25

9
8.35
7.85
7.8
7.75

9.95
10
10
10.1
10.4

9.5
9.6
9.35
11.6
11.8

1445.03

7.95

10.7

11.9

1396.98

7.85

11

11

1413.65
1336.3
1273.93
1373.71
1354.38
1346.89
1322.25
1246.87
1196.45
1189.35

7.7
8.05
7.1
7.35
7.35
7.35
7.3
7.35
7.2
7.3

11.2
11.1
10.6
10.9
10.5
9.3
9.3
8.95
8.65
9.05

11.2
10.4
9.4
10.1
9.6
10
9.2
8.1
7.8
8.2

1096.24

7.55

8.95

7.2

1080.66

7.2

9.35

6.75

988.3
967.55
958.12
935.85
914.69
927.78
949.23
926.63
928.94
914.01

6.5
6.2
6.1
6.1
6.1
5.9
6.25
6
6.1
6.2

8.9
8.75
8.9
9.1
8.6
8.8
8.9
9
9
8.95

6.15
6
5.95
5.6
5.5
5.95
6.05
6.1
6.2
6.2

899.79

6.2

9.3

6.15

896.13

5.85

6.3

910.76
927.54
913.56
937.39
888.32
860.73

5.4
5.55
5.4
5.45
5.1
5.15

8.7
8.85
8.5
8.35
8.05
7.1

6.2
6.2
6.05
6.15
5.8
5.8
20

1/4/2005
1/3/2005
2/2/2005
3/1/2005
1/12/200
4
1/11/200
4
1/10/200
4
1/9/2004
2/8/2004
1/7/2004
1/6/2004
5/5/2004
1/4/2004
1/3/2004
4/2/2004
2/1/2004
1/12/200
3
3/11/200
3
1/10/200
3
2/9/2003
1/8/2003
1/7/2003
2/6/2003
2/5/2003
1/4/2003
3/3/2003
5/2/2003
2/1/2003

878.96
871.35
907.38
916.27

5.1
5.15
5.1
5.1

7.05
6.9
7.1
7.05

5.9
5.95
6
6.4

907.43

7.1

917.19

4.9

7.3

6.05

861.14
849.96
827.98
833.98
819.86
810.67
838.21
901.85
879.24
818.94

4.46
4.16
4.26
4.16
4.18
4.22
4.2
4.2
4.36
4.12

7
6.95
7.1
7.15
6.8
7
6.55
7.8
7.25
7.35

5.7
5.75
5.55
5.6
5.55
5.4
5.4
6
6.1
5.5

793.94

7.55

5.2

779.28

3.84

7.15

5.3

817.12
733.45
743.3
720.56
691.96
671.46
630.37
635.72
646.8
664.77

3.64
3.48
3.6
3.66
3.52
3.54
3.24
3.14
3.2
3.32

7.85
7.15
7.35
7.1
7.05
7
7.05
7.25
7
7.35

5.6
5.15
5.15
5.05
5.1
5.1
5
5.2
5.1
5.25

21

Appendix 2 : Average yearly return and Standard Deviation

Appendix 3 : Portfolio return and risk

Portfolio A (F&N and PetGas)

Portfolio B (F&N and SIME)
Portfolio C (PetGas and SIME)

Portfolio Return, E(r)

=(0.5*M16)+(0.5*N16)
=(0.5*M16)+(0.5*O16)
=(0.5*N16)+(0.5*O16)

Portfolio Risk,
=(((0.5^2)*(M17^2)+(0.5^2)*(N17^2)+(2*0.5*0.5*M17*N17*R7))^0.5)
=(((0.5^2)*(M17^2)+(0.5^2)*(O17^2)+(2*0.5*0.5*M17*O17*R12))^0.5)
=(((0.5^2)*(N17^2)+(0.5^2)*(O17^2)+(2*0.5*0.5*N17*O17*R17))^0.5)

22

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Fraser

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23

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24