Assume you have £100,000 to invest in the UK stock market in shares listed on the FTSE ALL Share index. You need to build a diversified investment portfolio, which consists of at least 10 companies based on fundamental analysis. The aim is to maximise the returns of the investment and try to beat the market, e.g. achieving a greater return on average than the market return during the period of trading. You need to make reference to Efficient Market Hypothesis (EMH) in your analysis. You need to build your portfolio and start trading by 1st November 2019 the latest, The end date of trading period is by 1st February 2020. This means that you are going to have to use short-term investment strategies.

you should aim to solve the following four questions:

  1. What companies have you invested and why did you invest these companies? (Provide a brief overview of your investments, the investment strategies used in your transactions, and the trading performance of portfolio. You should explain the stock selection criteria or the trading strategies used to build the portfolio and prove that your stock selection criteria / trading strategies are correct, which achieved by directly referring to journal articles / books / business reports / news reading)
  2. How did you invest these companies? (This should include the company name, date of purchase/sell, number of shares bought/sold, share price)
  3. How are your investments performing so far? (How did the portfolio perform? Did the portfolio outperform the market? Which company performed particularly well or bad, and why? Try to link the trading results with the investment strategies used and the latest developments in the market.
  4. Are there any limitations/constrains on the investment strategies that you used in trading? or anything you would do differently in terms of share trading/investment in the future? (Pick one question out of these two)

Here is an example of portfolio template example,you don’t need to calculate. You just need to write out which companies you chose and what transactions you made in question two. You can add some useful data sheets or graphs in the appendix, the source is London Stock Exchange.

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