Executive Summary

The objective of this report is to construct and evaluate two portfolios, index tracking portfolio and speculative capital growth portfolio both began their lives on 21st April 2008 and ended on 20th May 2008. The purpose of the former portfolio is to replicate the return on the ASX/S&P 500 New All Ordinaries price index and the latter one is formed aiming at outperforming the market and maximizing the capital gains.

11 stocks have been selected for the tracker portfolio. The criteria for such selection are through capitalization-based sampling and stratified sampling. For capital growth portfolio, 8 stocks representing five major Australian industry sectors have been selected. Brief overview of all selected companies can be found in the appendix.

Next, both portfolios are evaluated using three performance measures: Sharpe’s Index, Treynor’s Index and Jensen’s Alpha. Over the observation period, the both portfolio has modestly replicated the AOI and......

Join Now to view the rest of this term paper!
Members: Login to view this research paper.

Title: Asx Portfolio Assignment
Approximate Word Count: 2229
Approximate Pages: 9 (250 words per double-spaced page)

With the Term Papers Lab Membership Pass, you get instant access to every essay on this site, including this essay on Asx Portfolio Assignment, for as long as you remain a member.

Other essays sites charge almost $100 for a single term paper. At Term Papers Lab, you can get instant access to over 100,000 research papers for as little as $29.95!