Portfolio & Fund Management - 15 Stocks in Malaysia
The 10 stocks are being selected for portfolio 1 among the 15 stocks due to having the highest market capitalization. It is a measurement derive from share price times the number of shares outstanding. In addition, it could be represent the public opinion of a company’s net worth. Undoubtedly, these 10 stocks are chosen because of having the highest company’s value, highest expectation from the public and both highest economic and monetary conditions. Although sometime market cap might be an economic bubble, it is still the best estimate of all market participants at any point in time. However, Axiata group and Maxis is rejected from the list since they are both lack of data and information. For the second portfolio, the 10 stocks are selected based on sectors which we categorized into banking, plantation and telecommunication. The reason we select is to evaluate the different performance of different industry which we can then compare the single stocks with the market performance to value the stocks.
Average monthly return is a seasonal performance of a stock which an investor must analyzed. The table above illustrates the average monthly return for the past 5 years which give a sense of how the investment performed during this particular period. However, investors should also look at monthly performance to fully appreciate the consistency of its monthly returns. For examples, a short term investors or speculators of CIMB group holdings may experience an unexpected loss during December 2010 to January 2011 if he or she values the stock accordingly to the average monthly returns.
On the other hands, to be detailing evaluate an individual stocks or portfolio, standard deviation which is a risk bear to obtain the prospected return or is widely described as a variability used in statistic and probability theory must be emphasized. It illustrates how much variation from the average (Weston n.d). Lower standard deviation indicates that the data is closer to the
Average monthly return is a seasonal performance of a stock which an investor must analyzed. The table above illustrates the average monthly return for the past 5 years which give a sense of how the investment performed during this particular period. However, investors should also look at monthly performance to fully appreciate the consistency of its monthly returns. For examples, a short term investors or speculators of CIMB group holdings may experience an unexpected loss during December 2010 to January 2011 if he or she values the stock accordingly to the average monthly returns.
On the other hands, to be detailing evaluate an individual stocks or portfolio, standard deviation which is a risk bear to obtain the prospected return or is widely described as a variability used in statistic and probability theory must be emphasized. It illustrates how much variation from the average (Weston n.d). Lower standard deviation indicates that the data is closer to the