MGT201 Assignment No 3 Solution Spring 2018

MGT201 Assignment No 3 Spring 2018

Dear Students, Here you can read or Download MGT201 - Financial Management Assignment No 3 Solution and Discussion of Spring 2018. Assignment Due Date is 26 July, 2018. Total Marks are 20. We are here to facilitate your learning and we do not appreciate the idea of copying or replicating solutions. MGT201 Assignment Solution File has been added. Previously we shared CS301 Assignment No 3 Solution Spring 2018.

MGT201 Assignment Topic:

Risk and return
Risk and return move side by side and ignoring any one of these two for investment decision can result in the irrational decision. Rational decision making requires investors to analyze the company’s specific risk contribution of investment along with market dynamics. Company-specific risk analysis helps investors to control the unsystematic risk and to come up with a best possible portfolio (a combination of highest return and lowest risk). Market dynamics can over-price or underprice a stock that can be a trap for the investors; Capital Asset Pricing Model (CAPM), Security Market Line (SML) and Gordon’s Formula can help investors to take a rational decision by calculating fair pricing of the stocks. Unlike market risk; investors can control the company’s specific risk if they have calculated the fair price and required rate of return of the available investment options correctly. Suppose you have to construct a portfolio for which you have considered three different sectors (Textile, Chemical and Food). Stock L and K from Chemical and Food sector have already been selected while one stock is required from the Textile sector to construct the portfolio. Further, information of three Stocks from the textile sector has been provided below, and you need to select only one that can be added to your portfolio.

MGT201 Assignment Deadline:

Make sure to upload the solution file before the due date on VULMS.

Any submission made via email after the due date will not be accepted.

MGT201 Assignment Formatting Guidelines:

Use the font style “Times New Roman” or “Arial” and font size “12”

It is advised to compose your document in MS-Word format

You may also compose your assignment in Open Office format

Use black and blue font colors only

MGT201 Assignment Rules for Marking:

Please note that your assignment will not be graded or graded as Zero (0), if:
It is submitted after the due date.
The file you uploaded does not open or is corrupt.
It is in any format other than MS-Word or Open Office; e.g. Excel, PowerPoint,
PDF etc.
Not submitted as per given format
It is cheated or copied from other students, internet, books, journals etc.

Please Note:
Formula and complete working of each part is mandatory; marks will be deducted in case of incomplete calculations.

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