FratFiles

• Save Paper

Executive Summary

The objective of this report is to construct and evaluate two portfolios, index tracking portfolio and speculative capital growth portfolio both began their lives on 21st April 2008 and ended on 20th May 2008. The purpose of the former portfolio is to replicate the return on the ASX/S&P 500 New All Ordinaries price index and the latter one is formed aiming at outperforming the market and maximizing the capital gains.

11 stocks have been selected for the tracker portfolio. The criteria for such selection are through capitalization-based sampling and stratified sampling. For capital growth portfolio, 8 stocks representing five major Australian industry sectors have been selected. Brief overview of all selected companies can be found in the appendix.

Next, both portfolios are evaluated using three performance measures: Sharpe’s Index, Treynor’s Index and Jensen’s Alpha. Over the observation period, the both portfolio has modestly replicated the AOI and......

View the rest of this paper...

Approximate Word Count: 2229
Approximate Pages: 9 (250 words per double-spaced page)

Similar Essays

1. Asx Portfolio Assignment
   

   ASX portfolio assignment Executive Summary The objective of this report is to construct and evaluate two portfolios, index tracking portfolio and speculative capital growth

2. Woodside Petroleum 2005 Analysis
   

   Standards (IFRS) 10 Reference 14 Introduction This report will try to analyse an ASX listed company, Woodside Petroleum Limited, through the recent articles from financial

3. Finance For Business Decision Assignment
   

   because it has almost all common shares listed on the Australian Stock Exchange (ASX). The companies in the All Ordinaries shows more than 95% of the market capitalization

4. Singapore Pestle Analysis
   

   |Political instability in | | | | | | |country like Indonesia and Vietnam |to SPC's portfolio |neighbor country may affect | | | | | | |to seek opportunity to tap oil | |the

5.