Business Capital Markets Portfolio
Business Capital Markets Portfolio
Business Capital Markets Portfolio
Project description
Marking
Rationale for choice of portfolio (which stocks/holdings, why chosen and explain the mix) 35%
Investment Theory 35%
Conclusions 20%
Structure, grammar, referencing 10%
Remember no marks for portfolio performance!
1) Intro: use this to set out the terms of the exercise
a) £100,000 to invest
b) investment objective (what are you trying to achieve)
c) time period (over what time period are you seeking performance)
2) Identify the holdings
a) min 4 and max 6 holdings (undergraduate students)
min 5 and max 10 holdings (post graduate students
b) all holdings must have quoted prices (source to be referenced)
c) consider costs
• stamp duty if you are buying UK equities
• initial charge on mutual funds
• but assume you always deal at mid-price
d) rationale for each holding (not description) i.e. what features suggest that the holding will perform well over the time frame chosen, what are the risk factors and (briefly) what performance do you expect from each holding
e) charts detailing past performance over a long time period (5 years or longer)
3) Justification for overall shape of portfolio, key here is diversification
a) industry
b) country/currency
c) developed/developing markets
d) investment vehicles (funds, active/passive, derivatives)
3a) Explanation for any trading undertaken
4) Investment theory
I am not expecting all the following aspects of theory to be included, but a good demonstration of the theory will earn you better marks. You can either discuss investment theory as a separate section or you can work it into the structure of your coursework. The main thing is to make sure you have covered some theory somewhere.
a) Modern portfolio theory
• risk-return trade-off and your risk profile
• the principle of diversification
• for extra marks: the efficient frontier and what it is demonstrates
b) CAPM
• beta and weighted beta of portfolio (esp. if all UK stocks)
• expected return per holding
c) Gordon”s growth model
• estimated intrinsic value of a stock (to compare with actual share price)
d) investment styles
• active/passive
• value/growth/income
e) the efficient market hypothesis
f) behavioural finance
5) Evaluation of portfolio over time period
a) analysis on monetary basis in a table of data
• performance of your portfolio by holding and overall return
• consider a benchmark against which you can assess your performance
b) overall judgment
• any comments to explain performance over the 5 weeks
• what have you learned from the exercise?
Capital Markets Coursework Briefing and Mark Scheme
You are required to submit both an electronic copy via Turnitin on Moodle and a hard copy to the Business School office.
2500 words(undergraduate students)
4000 words (postgraduate students)
(10% tolerance), include the word count in your coursework
Use spell and grammar check
Marking
Rationale for choice of portfolio (which stocks/holdings, why chosen and explain the mix) 35%
Investment Theory 35%
Conclusions 20%
Structure, grammar, referencing 10%
Remember no marks for portfolio performance!
1) Intro: use this to set out the terms of the exercise
a) £100,000 to invest
b) investment objective (what are you trying to achieve)
c) time period (over what time period are you seeking performance)
2) Identify the holdings
a) min 4 and max 6 holdings (undergraduate students)
min 5 and max 10 holdings (post graduate students
b) all holdings must have quoted prices (source to be referenced)
c) consider costs
• stamp duty if you are buying UK equities
• initial charge on mutual funds
• but assume you always deal at mid-price
d) rationale for each holding (not description) i.e. what features suggest that the holding will perform well over the time frame chosen, what are the risk factors and (briefly) what performance do you expect from each holding
e) charts detailing past performance over a long time period (5 years or longer)
3) Justification for overall shape of portfolio, key here is diversification
a) industry
b) country/currency
c) developed/developing markets
d) investment vehicles (funds, active/passive, derivatives)
3a) Explanation for any trading undertaken
4) Investment theory
I am not expecting all the following aspects of theory to be included, but a good demonstration of the theory will earn you better marks. You can either discuss investment theory as a separate section or you can work it into the structure of your coursework. The main thing is to make sure you have covered some theory somewhere.
a) Modern portfolio theory
• risk-return trade-off and your risk profile
• the principle of diversification
• for extra marks: the efficient frontier and what it is demonstrates
b) CAPM
• beta and weighted beta of portfolio (esp. if all UK stocks)
• expected return per holding
c) Gordon”s growth model
• estimated intrinsic value of a stock (to compare with actual share price)
d) investment styles
• active/passive
• value/growth/income
e) the efficient market hypothesis
f) behavioural finance
5) Evaluation of portfolio over time period
a) analysis on monetary basis in a table of data
• performance of your portfolio by holding and overall return
• consider a benchmark against which you can assess your performance
b) overall judgment
• any comments to explain performance over the 5 weeks
• what have you learned from the exercise?
