CHAPTER ONE: INTRODUCTION
1.1 ORIGIN OF THE REPORT:
The relevant data of this term paper is collected from Dhaka Stock Exchange Limited.Ten companies are selected from different sectors to more diversify the risk. Considering historical return of previous five years of the companies, five portfolios are constructed. A comparative study is made among the portfolios to find out efficient portfolio. It is designed to bridge the gap between the theoretical knowledge obtained from the course and contemporary real business world. Origin of the report is to fulfill the course requirement by doing analysis on different portfolios. This is an effort aimed at analyzing the capability of using the theoretical knowledge in a practical situation.
1.2 SELECTION OF THE TOPIC:
Investors should not and in fact don’t hold single assets; they hold groups or portfolios of assets. Investor’s portfolios are composed of diverse types of assets. Investors would prefer more return to less and would prefer less risk to more. Investors must take account of the interplay between asset returns when evaluating the risk of portfolio.
1.3 OBJECTIVES:
Broad objective is to find out a set of portfolios that offered a bigger return for the same risk or offered a lower risk for the same return
1.3.1 Specific Objectives:
Specific objectives that make this research part precise and clear:
v To calculate individual return and risk of the companies.
v To construct five portfolios of different weights.
v To calculate portfolio returns and risk.
v To find out efficient por ...