Project: Group ASSIGNMENT Maximum Words: NOT TO EXCEED 5000 WORDS SOFT AND HARD COPY OF REPORT REQUIRED.

REPORT IN WORD FORMAT PLUS CALCULATION IN EXCEL WORKSHEET. MARKS: 20% DEADLINE: 1ST April to be submitted through the class rep. SPECIFY YOUR INDEX NUMBER AND PROGRAMME.

Section 1:
The SEMDEX encompasses all listed companies on the official market of the SEM. Essentially, it is the main index that gives an overview of the current state of the Mauritian stock exchange markets. You are required to go on http://www,semdex.com, the website of the SEM. From 1st February till 28th February 2011, you are required to collect the closing price for all securities listed on the SEM. The daily quotes will be provided for each securities on the SEM. After downloading the prices, you are to select 10 companies. ( should provide some justifications with regards to your choices.) After that, the followings are required; Calculate the monthly mean return of each company. Calculate the monthly variance and hence the monthly standard deviation of each company. Calculate the variance-covariance matrix. Consider the following portfolio : SECURITY Portfolio 1 1 2 3 4 5 6 7 8 9 10 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 WEIGHT TO BE ASSIGNED ACCORDING TO THE MARKET CAPITALIZATION E,G MKT CAP OF SECURITY I/ TOTAL MARKET CAP OF ALL SECURITIES Portfolio 2

Calculate the mean and variance of both portfolio 1 and portfolio 2. Calculate the covariance between portfolio 1 and portfolio 2. Calculate the correlation between portfolio 1 and portfolio 2. 2

Final note: Please do insert the downloaded data in the appendix.

Section 2: Comparison of financial statements figures with the return and risk on the stock markets for the individual companies. Compare the mean return of the share prices with the profit or retained earnings as well debt (short term and long term) of the company. Please comment. You can do a yearly analysis i.e yearly return on share prices versus yearly declared profits in the financial statements and so on with other accounting variables. Can download stock market handbook 2010 from the SEM website- this publication provides a summary of financial statements of all listed companies on the SEM. Section 3: Comparison of portfolio return 1 & 2 with the individual return of companies as well as their risks. Comments where appropriate need to be inserted. Possible Format of the project: Section 1:
3

Introduction: Background of companies Results for Mean return and standard deviation for each company Portfolio return and the portfolio variance

Comments Section 2: Comparison of financial statements figures with the return and risk on the stock markets for the individual companies. Section 3: Comparison of portfolio return and the portfolio variance with individual companies Conclusion REFERENCES