This case study analyzes an investment portfolio performance for a client who invested $900,000 in a diversified equity portfolio over ten years. The analysis focuses on three Australian stocks: Commonwealth Bank, Woolworths, and Westpac Banking Corporation, with an equal 33% allocation to each. The All Ordinaries Index serves as a benchmark. The report includes descriptive statistical analysis of risk, return, covariance, and correlation. The study calculates arithmetic and geometric returns, and the correlation and covariance matrices. The portfolio's performance is evaluated, showing an 8.03% return. The investment policy statement, return objectives, risk assessment, liquidity considerations, and the ten-year time horizon are all covered, highlighting active management as a recommendation. The case study provides detailed financial analysis, including the opening and closing portfolio values, and the return generated.
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