Assignment First










The objective of this portfolio investment is to achieve higher return in the specified period of time. The main objective of the entire portfolio of 20 companies for stock price from 2003 to 2007 is to understand which individual portfolio has the most significant return or the entire portfolio has the good return. The objective is based on the various factors including the variance and co-variance for each of the stocks and more. This report focuses on getting the main objective to be validated for the investment choice and portfolio management.


For each return there can be assumed individual expected target and also for one investor the average portfolio for entire 20 companies can be assumed. The expected return is given as below.

Any kind of portfolio investment has its constraints while investing.

The expected return does vary with market environments and hence it is difficult to guess what will be the final or expected return
The portfolio return depends on the level of risk
The portfolio return also depends on the time duration of the investment. In this current scenario the investment is made for only 5 years and hence the returns do not seem to be as expected