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Section 1: Portfolio Analysis: Methodology

The document outlines the structure and components necessary for a portfolio analysis report, including an introduction, methodology, data collection, results presentation, and conclusion. It emphasizes the importance of using AI responsibly for mathematical clarification while ensuring original work. Additionally, it provides guidance on formatting equations and presenting data in tables and figures.

Uploaded by

Ankit Sharma
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4 views4 pages

Section 1: Portfolio Analysis: Methodology

The document outlines the structure and components necessary for a portfolio analysis report, including an introduction, methodology, data collection, results presentation, and conclusion. It emphasizes the importance of using AI responsibly for mathematical clarification while ensuring original work. Additionally, it provides guidance on formatting equations and presenting data in tables and figures.

Uploaded by

Ankit Sharma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Introduction

An introduction should contain three main points: 1. Some background on the topic so the
reader can understand it; 2. A hook to catch the reader’s interest; 3. A thesis statement that
clearly and quickly summarizes your main point.

Section 1: Portfolio Analysis

Methodology

The methodology describes all equations needed to solve your questions regarding the
portfolio analysis. Here, you should outline the equation used to compute the holding
period return, the minimum variance portfolio, and the portfolio expected return and
portfolio variance. Additionally, you can also include the equations for the sample
mean/expected return, sample variance, skewness, and excess kurtosis.

For example:

Using monthly close prices, we construct monthly holding period returns as follows:

P t−Pt −1
Rt = ×100
P t−1

Where Pt is the price at the of month t , and Pt −1 is the price at the end of the previous
month. In other words, if we would like to compute the monthly holding period return for
February, Rt , then Pt would be February’s monthly price, and Pt −1 would be January’s
monthly price.

How to write equations in Office Word.

1. Select the ``Insert’’ tab.


2. At the top right of your screen, you will find the ``symbols’’ sub-group.
3. Click Equation.
4. Select the appropriate options to write your equations.

- For Windows: The keyboard shortcut, to arrive directly in step 4, is “alt” + “=”.
- For Mac: “Control” + “=” or “Control” + “Shift” + “+”.
Data

Short description of the data and the sample period.


For example:
We collect monthly prices from Bloomberg for x individual companies that are traded on
the London Stock Exchange. The sample period spans from January 1900 to December 1910.
These companies are: xxxx , and their respective financial sectors are xxxx .

Advice on Using AI

AI can be a helpful resource, but it is important to use it wisely. Here are some guidelines for
how to incorporate AI into your work:
- Mathematical Clarification: If you are stuck on a concept, AI can provide explanations
or walkthroughs. However, you must ensure you understand what it says completely
before including it in your project.
- Do not sue AI to write entire sections of your project. Plagiarism and AI software’s
will flag this text. You should be writing and solving the mathematical problems
yourself.
o AI can make significant mistakes when solving mathematical problems.

Results

In this section, you report the main results, which will answer all the questions that appear
in the assignment brief. Example of a figure.

FIGURE 1: PRICES

Time Series Plot - Prices


600
500
400
300
200
100
0
90 90 91 92 93 93 94 95 96 96 97 98 99 99 00 01 02 02 03 04 05 05 06 07 08 08 09 10
/ 19 /19 /19 /19 /19 /19 /19 /19 /19 /19 /19 /19 /19 /19 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
2/ 11/ 8/ 5/ 2/ 11/ 8/ 5/ 2/ 11/ 8/ 5/ 2/ 11/ 8/ 5/ 2/ 11/ 8/ 5/ 2/ 11/ 8/ 5/ 2/ 11/ 8/ 5/

To enter the caption, right click and select “insert caption”, and follow the steps.
Example of a table

TABLE 1: PROBABILITIES

Probability Cumulative
Number of Orders function Dist. Function
0 0.1 0.1
1 0.13 0.23
2 0.26 0.49
3 0.27 0.76
4 0.19 0.95
5 0.05 1

To paste a table from Excel, select the table by highlighting all the cells and then copy it (Ctrl
+ c). Then in Word, select paste (Ctrl + v). To add a caption, right click in the Table, and
select “insert caption”.

Section 2: Financial Analysis Report

The body of this section should also include a methodology, data and results.

Conclusion

A very short paragraph summarizing the results and recommendations of both sections.

References

Markowitz, H.M. (1952). "Portfolio Selection". The Journal of Finance. 7 (1): 77–91.

The easiest way to formally find research references is by searching on Google Scholar:
1. Open google scholar
2. Search for the specific topic, e.g. ``minimum variance portfolio’’.

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