You have a hypothetical £100,000 to invest in shares quoted on the London Stock Exchange. You are to construct an investment portfolio of 10 companies and review its performance over a period of time.
The companies can be any 10 listed on the London Stock Exchange (including the Alternative Investment Market) as the primary listing. They should not operate in the following sectors: financial services (including banks), investment or real estate.
The detailed components of your assignment are as follows:
1) Produce a spreadsheet showing: the investments you have chosen; the closing share price on Thursday 31st October; the number of shares you have acquired; the beta of each company; and the value of your investment. Your spreadsheet should show the weighted average beta of your portfolio, accurately calculated.
2) Explain the approach you have taken to constructing your portfolio of companies showing your understanding of the need to diversify risk. ([url removed, login to view] words)
3) Explain your reasons for choosing each investment. This should include: a brief explanation of what the company does; analysis of how the company and its industry sector is performing; analysis of why you think its share price will perform strongly in the following weeks. Your work should be supported by commentary and analysis by industry professionals in financial institutions and the financial press. You are not expected to carry out a financial ratio analysis of the company. (c. 1,500 words)