Investment and Portfolio Management Assignment

Running head: FINANCE
Finance
Name of the student
Name of the university
Author note

1FINANCE
Table of Contents
1.0 Introduction..........................................................................................................................2
1.1 Diversification concept with regard to investment portfolio...............................................2
2.0 Performance of SHL shares as compared to Stock market index S&P / ASX 200 over the
period from 2013 – 2016............................................................................................................3
3.0 Discussion title.....................................................................................................................5
3.1 Overview of Sonic HealthCare Limited...............................................................................5
3.2 Unsystematic risk.................................................................................................................6
3.4 Systematic risk.....................................................................................................................6
4.0 Investment conclusion and recommendation.......................................................................7
Reference....................................................................................................................................8

2FINANCE
1.0 Introduction
Sonic HealthCare Limited ( SHL) is the global health care organization that has a well
established reputation for the excellence in the sector of pathology, laboratory medicine and
the radiology services. It has it’s headquarter in Sydney of Australia and the company
became one of the leading providers for healthcare products in Australia (Sonic Healthcare |
Home, 2017).
The main objective of this report is to provide the stock market status of SHL as
compared to the S&P / ASX 200 or the overall share prices of the stock market to analyse the
performance of the company. The report will further state the diversification concept with
regard to the investment portfolio. Moreover, the report will also focus on the systematic as
well as unsystematic risk that are the company is exposed to.
1.1 Diversification concept with regard to investment portfolio
Diversification concept is defined as the result of or act of meeting the variety. In the
investment planning and finance the diversification of portfolio is the strategy of managing
the risk with combining the asset variety to minimize overall risk from the investment
portfolio. The main objective of diversification is managing the risk associated with the
portfolio. A plan for managing the risk shall include the rules of diversification that are
followed strictly. The diversification assists in lowering the volatility level associated with
the portfolio owing to the fact that all the industries, stocks or assets do not fluctuate at the
same time. Holding various types of non-correlated assets can minimize the unsystematic
risks. A close connection is there among the diversification principle and the safety margin
concept. Apart from this, the diversification with regard to the non-correlated assets may
reduce the losses in the bearish market and preserve the capital for investing in the bullish