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AAF040-6 Financial Markets and Portfolio Management Assignment Example

Published: 22 Jan, 2025
Category Assignment Subject Management
University University of Bedfordshire Module Title AAF040-6 Financial Markets and Portfolio Management

Overview of AAF040-6  

Portfolio management involves selecting the right combination of assets to achieve the best return for a given level of risk (Akhiezer et al., 2022). This project focuses on building an optimal portfolio using real-time data from two FTSE 100 firms: Shell PLC and Reckitt Benckiser Group PLC. By choosing companies from different sectors, the analysis highlights the impact of diversification. The performance, trading data, and market standing of each company will be examined to identify the best possible investment mix.

Table of Contents 

  • Introduction 
  • Rationale of the selection of organisations 
  • Critical Comparison of the key summary statistics for each company 
  • Single index model 
  • The optimum investment weights for each company 
  • Mathematical Expression and Critical Evaluation 
  • Decomposition of total risk into systematic and specific risk components 
  • Importance of systematic risk in investment decisions 
  • Recommendations

Word Count: 3000 Words 

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