The assignment consists of applying to an actual investment in stocks most of the notions and concepts of the Chapters:
finance
Description
AIM The assignment consists of applying to an actual investment in stocks most of the notions and concepts of the Chapters: - “Risk and Return: Lessons from Market History”; - “Risk and Return: The Capital Asset Pricing Model”. The concepts can be found either in the textbook or in the slides. For instance, the notion of “Value” and “Growth” stocks is explained in the slides but not in the textbook. The hypothetical amount to be invested is 1 mln $ or €. The stocks must be 20 blue chips, that is they are included in one main index. The investment period conventionally starts 31/10/2019 and ends 31/10/2020. You already know the stock and market performance during the investment period: your aim, therefore, is not to maximize the return or minimize the risk, since you already know what happened. You have to decide the investment policy and style, select accordingly the stocks and focus on computing and reporting in a concise but effective way the performance (that is risk and return).
