Assignment-2

This assignment has to be submitted by each student individually.

In the class we have discussed following 4 strategies regarding Portfolio Re-balancing.

1. Rebalancing the Portfolio

i. Constant Rupee Strategy
ii. Constant Ratio Strategy
2. Rebalancing within the equity portfolio
i. Variable ratio Strategy
ii. Rupee cost average strategy

All the students have to use the data of earier portfolio assignment submitted either in group or
individually.

Pick up two companies from the portfolio assignment submitted last month. Show the process of
rebalancing using all the four strategies for both shares. Prepare the tables separately for all four
strategies. Use the following assumptions:-

1. Keep the amount of defensive portfolio same as invested in respective stock.

2. The starting price can be taken as the price mentioned in the portfolio assignment.
3. Price movements can be taken as 2% , 5%, 10%, 15% and 20% on both sides (i.e. upside and
downside)
4. The trigger points for taking action in rebalancing can be kept as 10% and 20% increase or
decrease in prices.
5. If portfolio assignment was submitted in group, all group members have to take separate
companies from portfolio. No company should be repeated within group members.
6. The assignment has to be submitted on excel sheet.
7. On first worksheet, the portfolio submitted earlier can be copied. On the second and third
worksheets rebalancing working can be shown for both stocks separately.
8. The file name can be given as Roll Number_Name

Last date of submission through mail--- 23/01/2021