JAIPURIA INSTITUTE OF MANAGEMENT, LUCKNOW

PGDM, PGDM-RM -2021-23 (FOURTH TRIMESTER)

TOPIC-HOW TO BUILD AN OPTIMAL RISKY PORTFOLIO

MAX.MARKS-30

Objective of the Study

I. To pick stocks from a long term investment perspective (15 Marks) (Part A)
II. To Prepare an Optimal Risky portfolio (15 Marks) (Part B)

Objective I Part A (Date of Submission-7 October, 2022)

The word file should include the following

 Know your Company

 Prepare a Score Card to evaluate your Company
 Application of the Score Card and getting the final score of your company (with all the
data and working)
 Discussion and Conclusion

Only word file needs to be submitted on the Moodle.

Part II- Project Work (Date of Submission- To be announced later)

Step 1: Screen ten companies out of the total number of companies selected by your section on
the basis of five important parameters. Explain.

Step 2: Using historical adjusted monthly closing price data (of the above chosen 10 Companies)
prepare an optimal risky portfolio on excel with the help of solver by maximizing the Sharpe
Ratio. (The monthly returns should be from April 2012 to March 2022). In the word file mention
the step by step process of Portfolio formation.

P.S- No short positions will be taken in any scrip.

Step 3: Interpretations & Conclusion-

•Prepare a table including scrip name, sector details and, weightage allotted to each scrip by the
solver. Also mention Expected Return, Standard Deviation, and Sharpe of Portfolio.

•Show the correlation chart of all scrips

You all need to submit both excel and word files on Moodle.