Mini-Assignment 01-FMC5PMT PDF

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FMC5PMT Portfolio Management Theory Department of Economics and Finance Latrobe Business School Latrobe University Mini-Assignment I Semester 1 2020 Part I Stock symbols are a unique code assigned by stock exchanges worldwide and are used to identify a company’s stock. The following table contains a sample of stock symbols for various corporations worldwide: Company Name Microsoft Hewlett Packard Hewlett-Packard General Electric Furama Fidelity Magellan Bouygues Siemens AG Vodafone Bakrie & Brothers Telstra TelMex Golden Harvest

Stock Symbol MSFT HPQ HWP.MU GE A09.SI FMAGX EN.PA SIE.F VOD.L BNBR.JK TLS.AX TELMEXL.MX GLHVF.PK

Stock Market Nasdaq NYSE Munich NYSE Singapore Mutual Funds, Nasdaq Paris Frankfurt London Jakarta Australia Mexico Pink Sheets, Nasdaq

Required Activities: 1. Complete the following table by finding the stock symbol for the following companies using Yahoo! Finance http://finance.yahoo.com (15 Marks) Company Name

Symbol MYR.AX

Stock Market ASX

Myer Holdings Limited MYE

FRA

Myer Holdings Berkshire Hathaway A McDonald’s Corp Jakarta Islamic Index Las Vegas Sands Corp Top Glove Corporation Berhad China Petroleum & Chemical Corp. Royal Dutch Shell A Citigroup Inc.

BRK-A MCD ^JKII LVS TGLVY SNP RDS-A C

NYSE NYSE JKT NYSE KLS NYSE Amsterdam NYSE

2. For each of the following industries, find the three largest companies by market capitalization and their symbols, using Yahoo Finance, http://finance.yahoo.com Hint – In the Yahoo Finance home page, choose Industries tab. Under industries choose the correct sector and use the stock screener by adding relevant industry to find the following information. The stock exchange should be Nasdaq GS + NYSE. (15 marks) IMPORTANT: Indicate the date that you obtained the information: 22nd April 2020 Sector: Consumer Cyclical Company Name 1. Toyota Motor Corporation 2. Tesla, Inc. 3. Honda Motor Co., Ltd

Sector: Financial Services Company Name 1. HSBC Holdings plc

Industry: Auto Manufacturers Symbol Market Capitalization TM 171.832B TSLA

126.62B

HMC

38.348B

Industry: Banks- Diversified Symbol Market Capitalization HSBC- PA 520.694B

2. JPMorgan Chase & Co.

JPM-PC

346.31B

3. JPMorgan Chase & Co.

JPM-PD

342.503B

Sector: Utilities Company Name 1. Brookfield Renewable Partners L.P. 2. Algonquin Power & Utilities Corp. 3. Clearway Energy, Inc.

Industry: Utilities-Renewable Symbol Market Capitalization BEP 8.053B

Sector: Healthcare Company Name 1. Zoetis Inc.

Industry: Drug Manufacturers-Speciality &.. Symbol Market Capitalization ZTS 59.221B

2. Takeda Pharmaceutical Company Limited 3. Teva Pharmaceutical Industries Limited

AQN

7.198B

CWEN

3.627B

TAK

52.81B

TEVA

10.641B

Sector: Technology Company Name 1. SAP SE 2. Salesforce.com, Inc. 3. Shopify Inc.

Industry: Soft wear- Applications Symbol Market Capitalization SAP 139.627B CRM

134.751B

SHOP

68.28B

Part II According to Lipper Analytical, in the past 10 years, only 21% of the mutual funds beat the S&P 500 Index. And Princeton University's Burton Malkiel cited statistics that indicated the average actively managed mutual fund has returned 1.8% per year less than the S&P 500 over a similar period. In other words, investors are better off investing in stock index funds to avoid paying high management fees and transactions costs to mutual fund or unit trust companies. For investors who don’t have much time to do research or capital to build diversified portfolios, investing in stock indices is an attractive option. The following table contains some of the better known traded indices that are traded just like regular stocks—mainly on the American Stock Exchange: Index Fund (ETF) Name Symbol Index Tracked Spiders SPY S&P 500 Diamonds DIA Dow Jones Industrial Index Sectors Energy Select Spider Financial Select Spider Technology Select Spider

XLE XLF XLK

Energy select Financial select Technology select

WEBS (World Equity Benchmark Shares) WEBS-Japan WEBS-UK

EWJ EWU

MSCI Japan MSCI U.K.

Required Activities: 1. Go to Yahoo Finance http://finance.yahoo.com to get quotes for AORD (ASX). Select the interactive chart (3 months.) and select Full screen view option. Then click on “+Compare EWJ”, i.e., comparing the AORD performance relative to the actual underlying index of EWJ and EWU. Finally, get the interactive chart for both EWJ & EWU and click “+Compare AORD (ASX). Print your results and comment on the following: (25 marks) a.

How closely does the AORD (ASX) track the EWJ index on the chart?

b.

How closely does the EWJ track the EWU index on the chart?

c.

Did the EWU Index perform better or worse than the AORD (ASX) & EWJ respectively in the past 3 months?

3. Go to Yahoo Finance http://finance.yahoo.com to get quotes for AORD (ASX). Select the interactive chart (3 months.) and select Full screen view option. Then click on “+Compare and comparing the AORD performance relative to the actual underlying price chart of TPW, LOV, TBH, HVN, KMD and JBH. Print your results and comparatively discuss the trends of each company share prices relative to AORD (ASX) index price. (25 marks)

4. Complete the following table by looking-up the historical prices for the various ETF’s and WEBB’s: (go to http://finance.yahoo.com insert symbol and click quote. On the quote page click historical prices. Use the adjusted closing price for the selected date.) (20 marks) Index/ ETF Name

Symbol

Spiders, S&P 500 (NYSE) SPY Diamonds, DJIA DIA Energy Sector Spider XLE Financial Sector Spider XLF iShares MSCI All Country ACWI World Index ETF VanEck Vectors Indonesia ETF IDX iShares MSCI Malaysia EWM iShares MSCI Australia EWA iShares MSCI Hong Kong EWH iShares MSCI India INP ishares China Large cap FXI Pro shares Ultra Short SKF Financials SPDR Barclays Capital High JNK Yield Bond Index

P t = Price on April 01, 2020 246.15 209.26 27.62 19.55 59.70

P t-1 = Price on April 01, 2019 280.11 256.27 61.87 25.72 71.26

-12.13 -18.35 -55.36 -23.99 -16.23

11.91 22.08 15.01 19.28 22.33 36.01 21.90

22.32 28.85 20.90 25.94 35.26 43.70 18.59

-46.64 -23.47 -28.19 -25.68 -36.68 -17.6 17.8

91.73

102.08

-10.14

[(P t / P t-1) -1] x 100 = one-year HPR (%)...