Three company's portfolios of 26 weeks are calculated in detail

1. Participants
Md Arman
(21206018)

2. Chosen
Companies
Total 3
Companies
aamra
networks
limited
BDCO
M
Online
Ltd
Bashundh
ara Paper
Mills Ltd

3. IT Industry (2)

4. Paper and Printing Industry (1)

5. Data overview
AAMRANET (A) BDCOM (B) BPML (C)
aamra networks limited BDCOM Online Ltd. Bashundhara Paper Mills Limited
Week Date Share Price Share Price Share Price
1 07-24-22 37 29.6 48.8
2 07-31-22 38.5 31.4 51
3 08-07-22 38 30.5 49.7
4 08-14-22 39 32.5 51.6
5 08-21-22 39.3 32.2 53.9
6 08-28-22 41.5 32.6 68.1
7 09-04-22 39 32.8 66.2
8 09-11-22 39.4 36.3 68.5
9 09-18-22 41.5 55.4 89.9
10 09-25-22
39 61.3 88
11 10-02-22 40.4 71.2 84.7
12 10-09-22 37.9 69.6 76.1
13 10-16-22 37.9 48.4 74.9
14 10-23-22 38.1 47.3 83
15 10-30-22 46.7 45.7 106.6
16 11-06-22 48.9 41.4 117.9
17 11-13-22 52.4 39 107.6
18 11-20-22 47.1 35.1 90.1
19 11-27-22 53.9 36.8 82.1
20 12-04-22 56 37 75.1
21 12-11-22 57.4 39.5 79.6
22 12-18-22 49.4 35.9 73.8
23 12-25-22 51.4 37.6 75.6
24 01-01-23 50.4 37.4 77.6
25 01-08-23 55.3 39.7 90.2
26 01-15-23 60.8 46.2 89.8

6. Average
Return
Standard
Deviation

7. Average
Return
Market Ave.
Return
0.19%
aamra
net
2.28%
BDCOM
2.68%
BPML
3.12%

8. Standard Deviation
BDCOM 14.17%
aamra net 7.65%
Market 1.59%
BPML 12.12%

9. Let’s look at CV
Which company should be chosen

10. A=aamra
B=BDCOM
C=BPML

12. Coeffifient of Variation (CV)
BPML CV:
risk/return = 12.12%/3.12% = 3.889010649
BDCOM CV:
risk/return = 14.17%/2.68% = 5.289974009
aamranet CV:
risk/return = 7.65%/2.28% = 3.355008383

13. Market CV
risk/return:
1.59%/0.19% = 8.368421

14. The company conditions are better than overall
market situation
BDCOM is riskier
aamranet is less risky
Comparison

16. Sign for
each
company
1 2 3

17. A & B
Covariance Correlation
0.002463293 0.22727558

18. B & C
Covariance Correlation
0.007088738 0.412513153

19. A & C
Covariance Correlation
0.004860872 0.524241347

20. Summarizing Correlation & Covariance
Covariance Between A & B
0.002463293
Corelation Between A & B
0.22727558
Covariance Between B & C
0.007088738
Corelation Between B & C
0.412513153
Covariance Between C & A
0.004860872
Corelation Between C & A
0.524241347

21. Decision
Lower Cov &
C.relation is
preferable
AB
Cov=.002463
C.reltion=.227276
BC
Cov=.007088
C.reltion=.412513
AC
Cov=.004860
C.reltion=.5242
41

22. Finding Beta

23. Beta
C
A
B
1.37
2.97
2.71

24. 1 2
Beta says
3
So, according to Beta, we will prefer A

25. Finding
1 2

26. Expected Return
A B
0.031993568
0.027223708
C
0.029217054

27. Standard Deviation
A B
0.192300038
0.084707075
C
0.113087276

28. Summarizing Expected return & SD
A B C
Expected
Return
2.72% 3.2% 2.92%
Standard
Deviatio
n
8.47% 19.23% 11.31%
CV 3.11 6.009 3.87

29. 1. B’s SD is higher than other two companies and Exp. Return is
almost closer to others
2. C’s SD is higher than A’s but return is very closed
3. A’s positions is betther than other two companies because
its SD is lower than other and Exp Return is almost the same of
B&C