Essays on Stock Portfolio

This paper presents profitability analysis of two companies listed and active in the London Stock Exchange. The two companies selected for the analysis include Premier Oil PLC trading under the ticker symbol PMO and Genel Energy PLC falling under the ticker symbol GENL in the exchange. The two companies fall under the Oil and Gas Producer main market segment of the London Stock Exchange. At the time of presenting this report, GENL traded at a price of 97.50p with a 52-week range of 71.75p to 441.00p. On the other hand, the MPS of Premier Oil PLC was at 63.50p ...

Assignment : Essay based on Chapter 5 of “Beggar thy neighbour”.

Assignment number

Assignment –A (1238 words) Essay-1 Question: The economic consequences of lending at compound interest resulted in loss of productive yield of the society. How finance dominated over economics and politics by using this concept of interest (Geisst 193)?

Introduction

The question given above poses a mandatory evaluation of the harmful impact of the compound interest based lending and consequent ease of loans for the people of America. The author, Charles Geisst, used the viewpoint of John Maynard Keynes to explain that the American society was so possessed by the idea of easily availing the loans using compounded ...

Executive Summary

The beginning investment portfolio was composed of ten Dow Jones Industrial 30 stocks that totaled an investment of $498,598. A hedging tactic was applied in order to have the capacity of liquidating the put options at prices that are close or in the money on the present Dow 30 portfolio. This tactic is applied in order to reduce the potential of risk in the event that the market goes flat or in the declining direction during the next year and a half. The selling of the put requests against the value of the beginning investment at strike values that ...

Answer a)

T-Bills are independent from state of economy on account of having back up faith of US Treasury. In other words, T-Bills are risk free from default probability because the return of 5.5% will be realized irrespective of state of economy. US Treasury will have to redeem the T-Bills in any economic state. However, the rate of 5.5% is composed of Risk Free Rate(2.5%) + Inflation premium(3%) and since there is uncertainty about level of inflation in the future, T-Bills are not purely risk free in terms of purchasing power. For Example if Inflation averaged to be 3.5% ...

- What financial ratios are important to a small business? A small business man must understand that financial ratios are important in measuring the business’ activities against benchmarks (i.e. similar firms or competitors). According to the Frank Cocker (2011) small companies tend to overlook the use of financial ratios principally because of the calculations involved are cumbersome. Large businesses on the other hand use financial ratios because it is one very good tool necessary for managing business performance. There are many financial ratios that are available to use but for small businesses, the more important basic ratios are: ...

Building a balanced securities portfolio is a difficult task taking into account tendencies of contemporary stock exchange. This paper is devoted to this issue and represents two strategies of building stocks and bonds portfolios implementing fundamental and technical analyses. Also, main concepts of allocation of securities were described and analysis of created portfolios with the help of appropriate benchmarks was represented.

Investment Analysis and Strategy

Part 1. Fundamental and Technical Analyses of Securities

A) Fundamental Analysis of Stocks

Fundamental analysis aimed at buying stocks which prices are below the potential value. There are several methods used by analysts that help determine the right stocks to ...