Investment Project Analysis

Résumé du document

Projet portant sur le choix de 3 stocks du S&P500 (Microsoft, Meta Platforms et JP Morgan) et étudier leur poids au sein du portefeuille.
Essai de 14 pages portant sur une analyse financière avec recherches, références et tables afin d'étayer le propos.

Extraits

[...] Class A [HYPERLINK: https://www.slickcharts.com/symbol/FB] JPM Financials JPMorgan Chase & Co. [HYPERLINK: https://www.slickcharts.com/symbol/JPM] Average return of MSFT for the period is 0.15% with Standard deviation of 1.94%. Thus MSFT is lower riskier Asset in our Portfolio with higher return. On the other hand SD of JPM is 2.26% which is higher of all the chosen assets which means JPM is one of the riskier Asset in our Portfolio. FB is having lower return than all other Assets with high volatility almost equal to JPM's stock. [...]

[...] When one Asset Moves upward other may not move upward and vice versa. Because, the situation may arise at +ve correlated Assets, that when one Assets moves downward , the other Assets may also moves downward, thus that will be most riskier position for the Risk Averse Investor and it will not be acceptable to the Investor. In all the graphs it can be easily seen that when the Correlation between the assets moves from - ve to its Risk/ Volatility also increases. [...]

[...] Our Regression Marks are not scattered which means our Portfolio return is highly linked with Market Return. For every increase in Market Return our portfolio return will be increased by 1.088 i.e. more than market's return. This is best among all the portfolios. Even in case Market return does not move upward, our portfolio return will move even in this case. We have created Regression Line with Market Return and Portfolio Return (MSFT-FB). [...]

[...] On the other hand our original Portfolio was getting yield of 0.12% with SD of 1.92%. Lastly in case of JPM/FB stock our optimized Portfolio is getting return of 0.07% with lowest SD of 1.87% and in our base case the same was also 0.07% with SD 1.87%. In view of above it can be concluded that with the optimized portfolio we can maximize our Return. Further if we add Risk Free Assets in our Portfolio then we can further optimize our portfolio with lower SD, however our return will also be decreased to some extent. [...]

[...] Portfolio Return Standard deviation MSFT & JPM MSFT & FB JPM & FB On the basis of Stock Returns of last 3 years and with equal weights, we have calculated Portfolio Return and it is observed that MSFT & FB Portfolio combination is giving higher return than other combinations; however their Volatility is also on higher side i.e than other combinations. Higher the Risk if the investor takes, higher the return it would get i.e. in the case of MSFT & FB. MSFT & JPM combination is having lower volatility and is also earning good average return of 0.10%. [...]