Investment Markets and Principles

Using recent data (Sept 2019 – Sept 2020) provided on Bahrain stocks (you canretrieve the data either from Bloomberg or Bahrain Bourse or from other sources under myguidance), perform the following tasks before compiling your report (equivalent to 1000words): Describe your investor’s profile Discuss your investment strategy as per your investor’s objectives Construct a portfolio of three assets according to Modern Portfolio Theory (for sureyou need to calculate the correlation coefficients between stocks) – You can simplyuse Excel-Data Analysis You should come up with calculations of the average returns of each of the assetsover a period of 1 year You should obtain the betas of each of the assets (use You should come up with calculations of the average market returns (using Bahrainmarket index BSE) over a period equal your investor’s objectivesGuidance: For your report and presentation, adhere to the following:

Show your investor’s profile, your strategy, and how you constructed your portfolioby calculating the portfolio return, portfolio beta, and portfolio standard deviation[25 marks]Evaluate all portfolio’s measures of performance: Sharpe Measure, TreynorMeasure, Jensen’s Measure [25 marks]Analyze your portfolio comparing it with the market portfolio [20 marks]Present your work to the class [30 marks] (equivalent to 500 words)

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