Investment portfolio calculation of the stock broking company

CASE STUDIES IN FINANCE
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Executive Summary
The study contains a detail of the strategy used by the mentioned stock broking company
Investment portfolio calculation is done based on the data available from the company. The
quantitative and qualitative analysis of the outcome of the calculation is done in the study. The
calculation of investment portfolio outcome found the low average portfolio return that can bring
obstruction in the business activities of the company. Recommendations are mentioned regarding
the interest and dividend rate so that the company can earn moiré dividend in its future course of
business. In addition, the recommendation on increasing selling price and revaluing the purchase
price of stock are also mentioned in the study. By increasing the price of the shares,
improvement in portfolio return are also mentioned in the recommendation.
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Table of Contents
Introduction......................................................................................................................................4
Answer 1..........................................................................................................................................4
Answer 2..........................................................................................................................................5
Answer 3..........................................................................................................................................9
Answer 4........................................................................................................................................10
Conclusion.....................................................................................................................................10
Reference list.................................................................................................................................10
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Introduction
Evaluation of investment portfolio for a stock broking company is important to keep the
company updates with the stock selling and purchasing. In the study, the impact of globalisation
on the portfolio investment is discussed. Presentation of evaluated investment portfolio is done in
the study. Analysis on portfolio investment and recommendations are also provided in the study.
Answer 1.
 Major activity impacting on financial markets
The globalised impact of financial market on respect of stock broking company and the major
activities that influence financial market are discussed. As per Kidwell et al. (2016, p.145) the
events and the announcements that financial companies make in respect of the financial changes
are the main responsible factors affecting financial market. DeMiguel et al. (2014, p.132) said
change in the share price, cash position; dividend income put their effect on the financial market.
In respect of a stock broking company, the updating of financial market determines the company
activities. Variable rate of stock price, share purchase price, share selling price, dividend and
interest are the main components in the basis of which a stock broking company turn. The
changes that put effects on these components change the activities of the stock broking company.
 Focusing on Australian Stock market
As per Chaboud et al. (2014, p.174) Value Investing strategy of investment portfolio is one of
the best-recommended strategies that help a stock broking company by valuing its mutual fund.
In reference to the case, the stock broking use to value the mutual fund, the dividend income and
interest to analyse the progress of the company. According to Henrekson and Sanandaji (2014,
p.175), the companies that follow the rules of valuing mutual funds, use to give the investors the
chance of getting discounts on their share. In respect of the case study, the investors get discount
based on the mutual fund valuation. According to Kalemli‐ozcan et al. (2013, p.254), the stock
of the company provides the opportunity to the stock buyer by giving index funds, actively
managed funds or Exchange traded funds. In respect of the case study, the stock broking
company sells exchange-traded funds to the investors in a discount rate.
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