Government College University, Lahore

Project

Submitted to:
Prof Sufyan Majid

Submitted by:
Muhammad Daniyal Wahab

Roll Number:

1766-Bcom-19
 Project

Phase 1: objective and Constraint

Objective:
To Save up for father’s retirement
Retirement savings are essential. You might not be able to work forever, so it's crucial to have a
retirement fund you can rely on in your glory days. You can allow your savings to develop
sufficiently to support you after retirement by investing the money you make during your
working years in the appropriate investment options.

Constraint:
Followings are the Constraints
Time horizon, liquidity, circumstances, taxes, Legal requirement

Phase 2: Investment opportunities in Pakistan

Following are the investment opportunities in Pakistan Under 5 million
Stocks
Bonds
Term Deposits
Real Estate
Commodities
We choose stocks from above list because we want more profit in short time.

Phase 3: Investment Strategy

We have 2 options of strategies to choose
Active strategy
Passive Strategy
In our case we choose Active strategy.
We will invest in securities and after some time we will revise our portfolio and sell our both
securities and buy 2 new securities. When I feel the share price of security going down or
fluctuating, I will sell that security and buy new one.
This strategy will help us to earn more return

Phase 4: Portfolio
In Excel File

Phase 5: Execution the Portfolio

In Excel File

Phase 6: Revised Portfolio after 5 or 20 Days

In Excel File

Phase 7: Evaluation of Portfolio

Calculation in Excel File

Sharp Ratio = (Rp - Rf)/σp

(0.23- 0.0434)/0.22
0.84

Jensen Measure = Rp - [Rf+B(Rm-Rf)]

0.23 -[ 0.0434+1.19(-0.02-0.0434)]
0.26

Treynor Measure = (Rp - Rf)/ B

(0.23 - 0.0434)/1.19
 0.156

M Square = (Sharp ratio * Sd )

+ Rf

(0.84*0.22) + 0.0434
0.22