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Project08 - period 8 Calculate the return of your portfolio...

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EASTERN MEDITERRANEAN UNIVERSITY FACULTY OF BUSINESS AND ECONOMICS DEPARTMENT OF BANKING AND FINANCE 2007-2008 SPRING SEMESTER BNFN/ FINA 416 Semester Assignment 1. You are given 10,000 NTL and are asked to invest in a portfolio of five different stocks that are traded in Istanbul Stock Exchange. 2. Five different corporations are already picked for your portfolio in the sample sheet. 3. Determine how much money you will invest in each stock. 4. State your proportions of each stock. 5. Buy your stocks at the closing prices of 23 rd May and State how many stocks you have bought from each corporation (i.e. the number of shares does not have to be in lots). Please round your share numbers. 6. Track the performance of your portfolio by using closing prices for the period 26 th May to 6 th June. 7. You are not allowed to change the composition of this portfolio for both each day and the whole
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Unformatted text preview: period. 8. Calculate the return of your portfolio for both each day and the whole period. 9. Calculate the standard deviation of the returns of your portfolio over this holding period. 10. Pick two stocks from your portfolio and calculate both the correlation and covariance between these two stocks (i.e. you need to calculate the daily returns for these two stocks). State the kind of relationship you conclude from your results. Administrative Matters 1. You can do the semester project in group up to two students. In a group project, everybody will receive the same grade. The project is 10% of your grade. 2. It is advised to use excel for the project’s calculations. 3. The deadline for the semester project 6 th June....
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