Assignment Objectives
You are given a notional SGD 100,000 to invest on the Singapore stock market in shares selected from the list of shares in the FTSE ST ALL Share Index (listed on the SGX). You need to split your investment 50:50 between two portfolios of shares, one where you select the shares by technical analysis and the other by fundamental analysis. Your aim is to beat the market with both portfolios. It is important you can demonstrate that you know the difference between these methods. You need to compare and contrast the two portfolios and you need to make explicit reference to EMH in your analysis.
Submission Requirements
* You need to submit a 2000-word report on your trades, including full referencing according to APA.
* It needs to be submitted to Turnitin.
* An appendix with a spreadsheets of your trades (these should not be submitted to turnitin)
Assignment Requirements
* You are given a notional SGD100,000 to invest in the Singapore stock market.
* Use historical and live market data from Monday, 5 June 2017 to Friday, 25 August 2017. This means that you are going to have to use short-term investment strategies. You have 2 weeks to finalize and to submit the report by 8 September 2017, but you should progressively do parts of the report as you trade during this period.
* The aim is for you to try to beat the market. The market is represented by the FTSE ST ALL Share Index - if you do not 'beat the market you will not lose marks, most people will find it impossible to do better than experienced investors. You must calculate the return on the market from your first trade to your last trade in order to determine whether you have beaten the market or not.
* The shares MUST be listed on the FTSE ST ALL Share Index.
* You are not allowed to use derivatives, such as options or any short selling.
* 50% of your investment must be based upon fundamental analysis and the other 50% on technical analysis (Based on two theories - no more or less, just TWO).
* Each of your portfolios must contain at least 10 shares.
* You are allowed to trade as many times as you like. ?
Recommended Format
Introduction
You need to explain the strategies you used and which if any of your portfolios beat the market. The target profit is a holding period return of at least 5 percent.
Literature Review
This section should provide theoretical and empirical evidence to demonstrate your understanding of EMH and Behavioural Finance and their conflicting view.
Rational and Methodology
How did you select the companies for your portfolios? You don't have to give a list of every company and why, it should be in general. The detail should be in the appendix. You need to make reference to the technical theories you have used and justify your approach, this should be done by making direct references to the journal articles read.
Results and Analysis
Critically evaluate the performance of your two portfolios. Did they beat the market? Which was the best? Your results should be referenced back to the literature review you have read on the type of analysis you have used and on the EMH.
Conclusion
Provide an informed conclusion to your report.
Ensure that you use capitaliq.com to trade, and make sure you use different data sets for the assignments.
Presentation: Structure, clarity, use of grammar, correct spelling, referencing.
Appendix
Spreadsheet of all of your trades, with notes on why you chose your companies. The spreadsheet needs to have profit and loss for each of your shares and should say your final profit. The spreadsheet needs to take account for trading costs, see below for details.
Transaction costs
When you purchase shares you must also pay Stamp Duty of 0.2% of the purchase price. There is no Stamp Duty payable when you sell your shares.
You should also assume that you buy your shares online through an internet broker. Assume that the broker charges you a flat fee of SGD10.00 per trade, i.e. SGD10.00 when you buy and SGD10.00 when you sell.
You can buy and sell in any amount you like. You do not have to buy in round amounts. For example, you could buy 798 shares or any other number you like.
Sources of Data
Obtain share prices and news from financial information sources like the SP Capital IQ Database, yahoo and Bloomberg (I will provide you with my capitaliq.com account details because you must use it).
No of Pages/Words : 2000 words