FIN30016 Management of Investment Portfolios - Individual Assignment

Individual Assignment 1:

That is, the number in each cell indicates the monthly size premium for that particular country/region. You are also given the global market monthly premium named ‘Global Market’. Based on the Excel spreadsheet indicated above, perform the following tasks. You are encouraged to use Excel to perform the analyses. However, your analyses and discussion of findings must be presented as a report in a Word/PDF format. The word limit for the report is 1500 words excluding Executive Summary, Table of Contents, Tables, Figures, and References.
1) Calculate the time-series average returns and standard deviations to the size premiums across the six regions/countries. You should also consider the reward to risk ratios calculated as premium divided by standard deviation. Over the sample period and regions/countries considered, do you think that size matters in investment strategy? (20 marks)
2) Compare the performance of these size premiums with the global market premium over the same period. Do they outperform or underperform the market? (5 marks)
3) Examine the time-series return pattern of these size premiums. Are there any specific periods in which the size premiums outperform or underperform? Based on the time-series return pattern, do you think market condition (e.g. boom or recession) plays a role in explaining the return variation for the size premiums? (20 marks)
4) Conduct some literature review on academic articles on the size premiums. Based on your review, identify two potential theories/reasons why small firms may outperform large firms. Also, review the findings on past literature conducted on size premiums in the regions/countries above. Is your finding consistent with the extant literature? (35 marks)
6) Structure and presentation of the report including referencing. (10 marks)
7) Writing style and grammar. (10 marks)

We’ll write customized paper for you.
Get Upto 30% OFF on your Order!

Order Now Whatsapp Now