Portfolio Construction and Management: A Recommendation Report

- To be able to demonstrate a comprehensive and critical understanding of portfolio construction and management

- To be able to formulate critically asset allocation models and investment decisions

- To be able to resolve some practical problems arising in complex `real` environment

- Interpret financial data and problems in the light of established theories

- Access a wide body of empirical research literature and critically appraise it

- Communication

- Problem solving

- Information technology

You are working as a fund manager in Oxford(UK) Asset Management Company. You are required to build up a diversified pure-equity fund. And there should be two stocks from Dow Jones Industrial Average. You are required to produce a recommendation report which shows the following information:

• Top-down strategy which includes economic and industry analysis
• Equity analysis which focuses on ratio analysis

Use a competitor from the same industry to justify your choice of the company

There is no risk-free asset. Short selling is allowed.

Notes: only stocks listed for more than five years will be incorporated in the portfolio. Ratio analysis needs to be applied on financial data of each firm over five years.

Introductory materials on Moodle:

Introduction to equity analysis above given link

Your assignment must be presented in the following format:

It must be word-processed in 12-point Arial font and double-spaced

It must be black text on a white or ivory background

All pages must be numbered

Margins must be as follows:

It should not contain your name(s)

Word count should be included

Assignments not complying with this format will be returned to students unmarked.

If you would like to have formative feedback on your assignment, please submit your draft plan to Moodle before 1pm on 18th February, 2022. Any late submission or email submission is not allowed. Give the file which you intend to upload a name which begins with your student number. For example, ‘12345678’. The feedback will be returned in one week.