Post Mid Assignment 1

Topic :Security Analysis

Course: Investment & Portfolio Management
BS Accounting & Finance
Semester 7

Announcement Date: Wednesday, November 4, 2015

Submission Date: : Wednesday, November18, 2015

Answer the following questions.

1. Select three Companies and collect daily price data for the past 30
trading days and compute the daily percentage price returns for each
for example : PAKISTAN OILFIELDS,PAKISTAN TELECOM, FAUJI
FERTILIZER .
2. Compute the mean daily return for each stock and the standard
deviation of daily returns.
3. Compute the covariance and correlations between the three possible
pairs.
4. Assuming equal weight between each pair of stocks, compute the
mean daily return and the standard deviation of each of the three
portfolios.
5. Create a riskreturn scatter plot and enter the average daily return
(vertical axis) and standard deviation (horizontal axis) for the three
individual stocks and the three portfolios.
6.Also prepare a portfolio of three companies of your own choice and
compare with the portfolio of the given companies .
Briefly discuss the results.
OTHER IMPORTANT INSTRUCTIONS:
DEADLINE:
Make sure to upload the solution file before the due date on turnitin
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Any submission made via email after the due date will not be
accepted.
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RULES FOR MARKING

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