Investment Management Assessment | Study

Running head: INVESTMENT MANAGEMENT
Investment Management
Name of the Student:
Name of the University:
Author Note

1INVESTMENT MANAGEMENT
Executive Summary:
The focus of the assessment is on analysing three different stocks for the period of 10 years to
detect the best possible investment options for an investor. Statistical tools such as average
annual rate of return, geometric average rate of return, standard deviation, co-efficient of
variation, correlation and covariance is used for understanding the risk to reward
composition. Moreover, three different portfolios have been prepared for detecting the
possible diversified investment option, which could be used by the investors. Portfolio C has
been selected, as the most viable investment options, which could be used by investors for
improving the return from an investment.

2INVESTMENT MANAGEMENT
Table of Contents
1. Introduction:...........................................................................................................................3
2. Research:................................................................................................................................3
3. Analysis:.................................................................................................................................7
4. Recommendations:...............................................................................................................10
5. Conclusion:..........................................................................................................................10
References and Bibliography:..................................................................................................12
Appendices:..............................................................................................................................14

3INVESTMENT MANAGEMENT
1. Introduction:
The overall assessment aims in evaluating the investment option that consist of three
stocks from the Australian market during 2009 and the All Ordinary Index of Australia. The
analysis directly provides information regarding the research that has been used for
evaluating the investment options, which could be used by investors for improving their
overall returns from investment. The different levels of statistical calculations have been used
for understanding the level of performance that would be used for making relevant
investment decisions. Calculations such as average annual rate of return, Geometric average
rate of return, standard deviation, co-efficient of variation, correlation and covariance is
mainly used for understanding the returns from the investment. After the selection of three
stocks the analysis is conducted for identifying the returns over the period of ten years by
creating an equally weighted portfolio. Moreover, relevant recommendation regarding the
investment options and the calculations are conducted for detecting the investment options
within the organisation.
2. Research:
The overall research requirement of the assessment is mainly analysed for understand
the relevant calculations that would be required for analysing the investment options. The
specific process has been used for selecting the relevant stocks, as a viable investment option
during 2009. BHP Billiton, Woolworths, and Commonwealth Bank of Australia was
considered one of the most viable investment options during 2009, as these companies were
generating high level of income from investment (Au.finance.yahoo.com 2020). The research
is mainly conducted on different statistical tools, which has been used for determining the
financial viability of the investment options.