Portfolio Construction Solutions -

Running head: PORTFOLIO CONSTRUCTION
Portfolio Construction
Name of the Student:
Name of the University:
Author Note:

PORTFOLIO CONSTRUCTION1
Table of Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................2
Information about the Companies:.........................................................................................2
The Change in the share price of the five companies:...........................................................4
Construction of Portfolio:......................................................................................................4
Portfolio return VS Index Return:..........................................................................................5
Standard Deviation, Mean and Portfolio Risk:......................................................................6
Conclusion:................................................................................................................................7
References:.................................................................................................................................8

PORTFOLIO CONSTRUCTION2
Introduction:
The following report consists of the analysis of the historical returns of five ASX
listed companies which belong to different industries. The five companies which are selected
is listed in the following points.
 Commonwealth Bank of Australia.
 BHP Billiton Limited
 Wools-worth Group Limited
 Alexium International Group Limited
 Lepidico Limited.
The historical share price for these company is selected for a period of past 5 years
and the percentage change in each of the share price is calculated. The graph of the
percentage change over the months is provided. A portfolio consisting of all the listed stocks
is constructed with equal weights and the return of the portfolio with the index return is
analysed.
Discussion:
Information about the Companies:
The commonwealth bank of Australia is a company which is related to the finance
industry. It is one of the oldest operating banks in Australia, and provides financial services
to the residents of Australia, New Zealand and the United States. The bank accepts deposits
and performs all functions which are important for a banking company. The total assets
which are with the bank is around A$ 976.374 billion, while the net income which was
generated by the bank was A$ 9.881 billion.