Contents

Page

Introduction

Objective

Methodology

Overview about the Companies

Analysis of Probability

21

Our Investment Allocation

27

Comment on the Overall all Impact of Different Information and

27

events on Bangladesh Stock Market

Conclusion

28

Introduction
Portfolio means combination of investment. On the other hand, Portfolio management is the
professional management of various securities (shares, bonds and other securities) and assets
(e.g., real estate), to meet specified investment goals for the benefit of the investors. Investors
may be institutions (insurance companies, pension funds, corporations etc.) or private investors
(both directly via investment contracts and more commonly via collective investment schemes
e.g. mutual funds or exchange-traded funds).
As a part of our work study, we collected data about 4 companies. These are
Aftab Automobiles Limited
Dhaka Bank Limited
Dutch-Bangla Bank Limited
Dhaka Bank Limited & Dutch-Bangla Bank Limited are in Banking Industry and Aftab
Automobiles Limited is in engineering industry.

Objective:
Our main objective in this report paper was to decide in which industry or portfolio, we will
invest. How we will manage our portfolio was also our objective in this report.

Methodology
We collected price index of the shares and market index from the library of Dhaka Stock
Exchange. Then we calculated Expected Return, Standard Deviation and Beta using 25 months
and daily 30 weeks data.
Then we made 3 portfolios and calculated Coefficient of Variances and Correlations using 25
months and daily 30 weeks data.
Finally we allocated our investment based on the calculations on May 02, 2012.

Overview about the Companies

Aftab Automobiles Limited

Aftab Automobiles Limited was incorporated in Bangladesh in 1967 as a Private Limited
Company. In 1981 the Company registered itself as a Public Limited Company which is one of
the largest automobile assembling plants in the private sector. The Registered Office of the
Company is located at 125/A, Motijheel Commercial Area, Dhaka-1000. The Company was
listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited in the year
1987 and 1996 respectively. The principal activities of the Company throughout the period were
assembling of Toyota Land Cruiser soft top/ Pick-up, Land Cruiser Prado, Hino Bus, Hino Mini
Bus / Truck Chassis with a production Capacity of 2400 units of vehicles in 3 shifts in
Assembling Unit. But since inception, the Plant is running single shift considering the market
demand. The Company has added four units namely Body Building Unit, Paint Unit, Battery
Unit & Furniture Unit and the commercial production of which started w.e.f. May 5, 1997,
November 01, 1999, January 03, 2002 and May 01, 2002 respectively.

Listing Year: 1987

Face Value: 10
Market lot: 50
No of securities: 68380302
Last Dividend: 20%
Market Category: A

Dhaka Bank Limited

Bangladesh economy has been experiencing a rapid growth since the '90s. Industrial and
agricultural development, international trade, inflow of expatriate Bangladeshi workers'
remittance, local and foreign investments in construction, communication, power, food
processing and service enterprises ushered in an era of economic activities. Urbanization and
lifestyle changes concurrent with the economic development created a demand for banking
products and services to support the new initiatives as well as to channelize consumer
investments in a profitable manner. A group of highly acclaimed businessmen of the country
grouped together to responded to this need and established Dhaka Bank Limited in the year
1995.

Listing Year: 2000

Face Value: 10
Market lot: 100
No of securities: 466759413
Last Dividend: 30%
Market Category: A

Dhaka Bank Limited

Dutch-Bangla Bank started operation is Bangladesh's first joint venture bank. The bank was an effort by
local shareholders spearheaded by M Sahabuddin Ahmed (founder chairman) and the Dutch company
FMO.

From the onset, the focus of the bank has been financing high-growth manufacturing industries in
Bangladesh. The rationale being that the manufacturing sector exports Bangladeshi products worldwide.
Thereby financing and concentrating on this sector allows Bangladesh to achieve the desired growth.
DBBL's other focus is Corporate Social Responsiblity (CSR). Even though CSR is now a cliche, DBBL is
the pioneer in this sector and termed the contribution simply as 'social responsiblity'. Due to its
investment in this sector, DBBL has become one of the largest donors and the largest bank donor in
Bangladesh. The bank has won numerous international awards because of its unique approach as a
socially conscious bank.
DBBL was the first bank in Bangladesh to be fully automated. The Electronic-Banking Division was
established in 2002 to undertake rapid automation and bring modern banking services into this field. Full
automation was completed in 2003 and hereby introduced plastic money to the Bangladeshi masses.
DBBL also operates the nation's largest ATM fleet and in the process drastically cut consumer costs and
fees by 80%. Moreover, DBBL choosing the low profitability route for this sector has surprised many
critics. DBBL had pursued the mass automation in Banking as a CSR activity and never intended
profitability from this sector. As a result it now provides unrivaled banking technology offerings to all its
customers. Because of this mindset, most local banks have joined DBBL's banking infrastructure instead
of pursuing their own.

Listing Year: 2001

Face Value: 10
Market lot: 500
No of securities: 200000000
Last Bonus: 33.33%
Market Category: A

Calculation of expected return and standard deviation of all company based

on past data:

AFTABAUTO-25months
Date
CLSPR
Dividend
02-05-2010
237.35 0.555556
01-06-2010
304.5 0.555556
04-07-2010
274.7 0.555556
01-08-2010
342.2 0.555556
02-09-2010
507 0.555556
03-10-2010
570.9 0.555556
01-11-2010
591 0.555556
01-12-2010
442.8 0.555556
02-01-2011
451 0.555556
01-02-2011
334.2 0.555556
01-03-2011
191.1 0.555556
03-04-2011
307.2 0.555556
02-05-2011
267.1 0.555556
01-06-2011
243.8 0.555556
03-07-2011
271.9 0.555556
01-08-2011
281.4 0.555556
04-09-2011
261.9 0.555556
02-10-2011
238.4 0.555556
01-11-2011
195.2 0.555556
01-12-2011
188.5 0.555556
01-01-2012
144.4 0.555556
01-02-2012
98.3 0.555556
01-03-2012
111.4 0.555556
01-04-2012
127.6 0.555556
02-05-2012
154.8 0.555556
R

HPR
0.285256
-0.09604
0.247745
0.483213
0.127131
0.036181
-0.24982
0.019773
-0.25775
-0.42652
0.610442
-0.12873
-0.08515
0.117537
0.036983
-0.06732
-0.08761
-0.17888
-0.03148
-0.23101
-0.3154
0.138917
0.150409
0.21752

R
0.013142
0.013142
0.013142
0.013142
0.013142
0.013142
0.013142
0.013142
0.013142
0.013142
0.013142
0.013142
0.013142
0.013142
0.013142
0.013142
0.013142
0.013142
0.013142
0.013142
0.013142
0.013142
0.013142
0.013142

0.013142
varience
stdev

(R-R)
0.272115
-0.10918
0.234603
0.470072
0.11399
0.023039
-0.26296
0.006632
-0.27089
-0.43967
0.597301
-0.14187
-0.09829
0.104396
0.023841
-0.08046
-0.10075
-0.19202
-0.04462
-0.24415
-0.32855
0.125776
0.137267
0.204378

(R-R)
0.074046
0.011921
0.055039
0.220967
0.012994
0.000531
0.06915
4.4E-05
0.073381
0.193306
0.356768
0.020126
0.009662
0.010898
0.000568
0.006474
0.01015
0.036871
0.001991
0.059608
0.107943
0.015819
0.018842
0.041771

(R-R)
1.408872
(R-R)/n 0.058703
(R-R)/n 0.242287

Table-01: Calculation of Expected Return and Standard Deviation of aftab auto using recent 25 months
data

DhakaBANK-25months
Date
CLSPR
Dividend
02-05-2010
41.575 0.972222
01-06-2010
52.3 0.972222
04-07-2010
53.45 0.972222
01-08-2010
51.375 0.972222
05-09-2010
54 0.972222
03-10-2010
60.9 0.972222
01-11-2010
68 0.972222
01-12-2010
80.8 0.972222
02-01-2011
75.3 0.972222
01-02-2011
67.8 0.972222
01-03-2011
60.9 0.972222
03-04-2011
43.1 0.972222
02-05-2011
39.8 0.972222
01-06-2011
40 0.972222
03-07-2011
44.3 0.972222
01-08-2011
46.7 0.972222
04-09-2011
44.3 0.972222
02-10-2011
40.9 0.972222
01-11-2011
43.9 0.972222
01-12-2011
44.5 0.972222
01-01-2012
44.3 0.972222
01-02-2012
34.7 0.972222
04-03-2012
33.9 0.972222
01-04-2012
35 0.972222
02-05-2012
35.5 0.972222
R

HPR
0.281352
0.040578
-0.02063
0.070019
0.145782
0.132549
0.202533
-0.05604
-0.08669
-0.08743
-0.27632
-0.05401
0.029453
0.131806
0.076122
-0.03057
-0.0548
0.09712
0.035814
0.017353
-0.19476
0.004963
0.061127
0.042063

R
0.021141
0.021141
0.021141
0.021141
0.021141
0.021141
0.021141
0.021141
0.021141
0.021141
0.021141
0.021141
0.021141
0.021141
0.021141
0.021141
0.021141
0.021141
0.021141
0.021141
0.021141
0.021141
0.021141
0.021141

0.021141
varience
stdev

(R-R)
0.260211
0.019437
-0.04177
0.048878
0.124641
0.111408
0.181392
-0.07718
-0.10783
-0.10857
-0.29746
-0.07515
0.008312
0.110665
0.054981
-0.05171
-0.07594
0.075979
0.014673
-0.00379
-0.2159
-0.01618
0.039987
0.020922

(R-R)
0.06770993
0.00037779
0.00174498
0.00238905
0.01553535
0.0124117
0.03290294
0.00595642
0.01162758
0.01178774
0.08848197
0.00564749
6.9086E-05
0.01224664
0.00302295
0.00267438
0.00576751
0.00577286
0.00021529
1.4347E-05
0.04661236
0.00026172
0.00159892
0.00043775

(R-R)
0.33526676
(R-R)/n 0.01396945
(R-R)/n 0.11819242

Table-02: Calculation of Expected Return and Standard Deviation of Dhaka bank using last 25 months
data

DBBL-25months
Date
02-05-2010
01-06-2010
04-07-2010
01-08-2010
02-09-2010
03-10-2010
01-11-2010
01-12-2010
02-01-2011
01-02-2011
01-03-2011
03-04-2011
02-05-2011
01-06-2011
03-07-2011
01-08-2011
04-09-2011
02-10-2011
01-11-2011
04-12-2011
01-01-2012
01-02-2012
01-03-2012
01-04-2012
02-05-2012

CLSPR
128.425
149.8
152.25
151.875
162.05
181.725
214.375
226.525
226.525
212.35
113.15
151.475
140.8
134.225
146.7
155.45
162.1
156.325
140.75
133
164.3
116.3
106.5
122.1
124.3

Dividend
0.833333333
0.833333333
0.833333333
0.833333333
0.833333333
0.833333333
0.833333333
0.833333333
0.833333333
0.833333333
0.833333333
0.833333333
0.833333333
0.833333333
0.833333333
0.833333333
0.833333333
0.833333333
0.833333333
0.833333333
0.833333333
0.833333333
0.833333333
0.833333333
0.833333333

HPR

(R-R)

(R-R)

0.172928428
0.021918113
0.0030104
0.072482853
0.12655559
0.184252763
0.060563654
0.00367877
-0.058897105
-0.463228946
0.346074532
-0.064972218
-0.040778883
0.099149438
0.065326062
0.048139809
-0.030485297
-0.094301402
-0.049141504
0.24160401
-0.287076486
-0.077099455
0.154303599
0.024843025

0.15381
0.002799
-0.01611
0.053364
0.107437
0.165134
0.041445
-0.01544
-0.07802
-0.48235
0.326956
-0.08409
-0.0599
0.080031
0.046207
0.029021
-0.0496
-0.11342
-0.06826
0.222485
-0.3062
-0.09622
0.135185
0.005724

0.023657
7.84E-06
0.000259
0.002848
0.011543
0.027269
0.001718
0.000238
0.006086
0.232659
0.1069
0.007071
0.003588
0.006405
0.002135
0.000842
0.002461
0.012864
0.004659
0.0495
0.093756
0.009258
0.018275
3.28E-05

0.01911874

0.624033
(R-R)/n 0.026001
(R-R
)/n 0.161249
(R-R
)

Table-03: Calculation of Expected Return and Standard Deviation of of DBBL using recent 25 months
data

AFTABAUTO- 30week
Date
CLSPR
Dividend
03-11-2011
193.8 3.846154
17-11-2011
180.7 3.846154
24-11-2011
193.6 3.846154
01-12-2011
188.5 3.846154
08-12-2011
139 3.846154
15-12-2011
134.4 3.846154
22-12-2011
142.8 3.846154
29-12-2011
141.9 3.846154
05-01-2012
154.4 3.846154
12-01-2012
138.4 3.846154
19-01-2012
129.8 3.846154
26-01-2012
117.5 3.846154
02-02-2012
95.5 3.846154
09-02-2012
94.5 3.846154
16-02-2012
97.4 3.846154
23-02-2012
99.4 3.846154
01-03-2012
111.4 3.846154
08-03-2012
105.6 3.846154
15-03-2012
110 3.846154
22-03-2012
120.4 3.846154
29-03-2012
126.3 3.846154
05-04-2012
122 3.846154
12-04-2012
153.2 3.846154
19-04-2012
154.5 3.846154
26-04-2012
152.1 3.846154
03-05-2012
151.8 3.846154
10-05-2012
149.1 3.846154
17-05-2012
146.3 3.846154
24-05-2012
141.3 3.846154
31-05-2012
141 3.846154
R

HPR
-0.04775
0.092674
-0.00648
-0.2422
-0.00542
0.091117
0.020631
0.115195
-0.07872
-0.03435
-0.06513
-0.1545
0.029803
0.071388
0.060022
0.159418
-0.01754
0.078089
0.12951
0.080948
-0.00359
0.287264
0.033591
0.00936
0.023315
0.00755
0.007016
-0.00789
0.025097

(R-R)
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422
0.022704422

0.022704

0.004964
0.004896
0.000852
0.070172
0.000791
0.00468
4.3E-06
0.008554
0.010286
0.003255
0.007715
0.031402
5.04E-05
0.00237
0.001393
0.018691
0.00162
0.003067
0.011408
0.003392
0.000692
0.069992
0.000119
0.000178
3.72E-07
0.00023
0.000246
0.000936
5.72E-06
0

0.261959

varience
stdev

0.009033

#DIV/0!

0.095042

Table-04: Calculation of Expected Return and Standard Deviation of of aftab auto using last 30 weeks
data

DhakaBank-30week
Date
CLSPR
Dividend
03-11-2011
44.3 6.730769
17-11-2011
45.4 6.730769
24-11-2011
43.7 6.730769
01-12-2011
44.5 6.730769
08-12-2011
42.2 6.730769
15-12-2011
42.8 6.730769
22-12-2011
44.6 6.730769
29-12-2011
44.5 6.730769
05-01-2012
45.1 6.730769
12-01-2012
42.2 6.730769
19-01-2012
40.6 6.730769
26-01-2012
38 6.730769
02-02-2012
34.6 6.730769
09-02-2012
38.9 6.730769
16-02-2012
42.2 6.730769
23-02-2012
44 6.730769
01-03-2012
33.5 6.730769
08-03-2012
32.5 6.730769
15-03-2012
33.7 6.730769
22-03-2012
34.7 6.730769
29-03-2012
34.8 6.730769
05-04-2012
34.6 6.730769
12-04-2012
35 6.730769
19-04-2012
35.5 6.730769
26-04-2012
34.2 6.730769
03-05-2012
35.5 6.730769
10-05-2012
35.5 6.730769
17-05-2012
33.7 6.730769
24-05-2012
31.2 6.730769
31-05-2012
30.4 6.730769

HPR
0.176767
0.11081
0.172329
0.099568
0.173715
0.199317
0.148672
0.164736
0.084939
0.121582
0.101743
0.087652
0.318808
0.25786
0.202151
-0.08566
0.171068
0.244024
0.2294
0.196852
0.187666
0.206092
0.206593
0.152979
0.234818
0.189599
0.138895
0.125542
0.190089

(R-R)
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852
0.165813852

0.010953
-0.055
0.006515
-0.06625
0.007901
0.033503
-0.01714
-0.00108
-0.08087
-0.04423
-0.06407
-0.07816
0.152995
0.092047
0.036337
-0.25148
0.005254
0.07821
0.063586
0.031038
0.021852
0.040278
0.04078
-0.01283
0.069004
0.023785
-0.02692
-0.04027
0.024275

(R-R)
0.00012
0.003025
4.24E-05
0.004389
6.24E-05
0.001122
0.000294
1.16E-06
0.006541
0.001956
0.004105
0.006109
0.023407
0.008473
0.00132
0.063241
2.76E-05
0.006117
0.004043
0.000963
0.000478
0.001622
0.001663
0.000165
0.004762
0.000566
0.000725
0.001622
0.000589

Table-05: Calculation of Expected Return and Standard Deviation of Dhaka Bank using recent 25 days
data

DBBL-30week
Date
CLSPR
Dividend HPR
R
(R-R)
(R-R)
03-11-2011
139.83 5.769231
17-11-2011
137.3 5.769231 0.023165 0.043814 -0.02065 0.000426
24-11-2011
139.67 5.769231 0.059281 0.043814 0.015467 0.000239
30-11-2011
136.6 5.769231 0.019326 0.043814 -0.02449
0.0006
08-12-2011
128.1 5.769231 -0.01999 0.043814
-0.0638 0.004071
15-12-2011
132.9 5.769231 0.082508 0.043814 0.038694 0.001497
22-12-2011
146.3 5.769231 0.144238 0.043814 0.100424 0.010085
29-12-2011
161.3 5.769231 0.141963 0.043814 0.09815 0.009633
05-01-2012
163.1 5.769231 0.046926 0.043814 0.003113 9.69E-06
12-01-2012
151.9 5.769231
-0.0333 0.043814 -0.07711 0.005946
19-01-2012
146.6 5.769231 0.003089 0.043814 -0.04072 0.001658
26-01-2012
134.2 5.769231 -0.04523 0.043814 -0.08904 0.007929
02-02-2012
117.2 5.769231 -0.08369 0.043814
-0.1275 0.016256
09-02-2012
98.3 5.769231 -0.11204 0.043814 -0.15585 0.02429
16-02-2012
103.5 5.769231 0.111589 0.043814 0.067776 0.004594
23-02-2012
102 5.769231 0.041249 0.043814 -0.00257 6.58E-06
01-03-2012
106.5 5.769231 0.100679 0.043814 0.056865 0.003234
08-03-2012
102.9 5.769231 0.020368 0.043814 -0.02345 0.00055
15-03-2012
107 5.769231 0.095911 0.043814 0.052097 0.002714
22-03-2012
113.3 5.769231 0.112797 0.043814 0.068983 0.004759
29-03-2012
116.1 5.769231 0.075633 0.043814 0.031819 0.001012
05-04-2012
120.9 5.769231 0.091036 0.043814 0.047222 0.00223
12-04-2012
128.1 5.769231 0.107272 0.043814 0.063459 0.004027
19-04-2012
128.8 5.769231 0.050501 0.043814 0.006688 4.47E-05
26-04-2012
123 5.769231 -0.00024 0.043814 -0.04405 0.001941
03-05-2012
125.1 5.769231 0.063977 0.043814 0.020164 0.000407
10-05-2012
126 5.769231 0.053311 0.043814 0.009498 9.02E-05
17-05-2012
121.9 5.769231 0.013248 0.043814 -0.03057 0.000934
24-05-2012
121.8 5.769231 0.046507 0.043814 0.002694 7.26E-06
31-05-2012
123.4 5.769231 0.060503 0.043814 0.016689 0.000279
R

0.043814
varience
stdev

(R-R)
0.109469
(R-R)/n 0.003775
(R-R)/n 0.061439

Table-06: Calculation of Expected Return and Standard Deviation of Southeast Bank using last 30
months data

Calculating Covariance and Correlation:

A.Auto-25
D.Bank-25 DBBL-25
0.272114546 0.260211
0.153809688
-0.10918251 0.019437
0.002799373
0.234603376 -0.04177
-0.01610834
0.470071557 0.048878
0.053364114
0.113989634 0.124641
0.10743685
0.02303905 0.111408
0.165134023
-0.26296303 0.181392
0.041444914
0.006631522 -0.07718
-0.01543997
-0.27088985 -0.10783
-0.078015844
-0.43966601 -0.10857
-0.482347686
0.597300829 -0.29746
0.326955793
-0.14186704 -0.07515
-0.084090957
-0.09829493 0.008312
-0.059897622
0.104395504 0.110665
0.080030699
0.023840912 0.054981
0.046207323
-0.08046376 -0.05171
0.02902107
-0.10074929 -0.07594
-0.049604037
-0.19201934 0.075979
-0.113420142
-0.04461933 0.014673
-0.068260243
-0.24414665 -0.00379
0.22248527
-0.32854638
-0.2159
-0.306195226
0.125775508 -0.01618
-0.096218195
0.137267298 0.039987
0.13518486
0.204378389 0.020922
0.005724285

A.Auto-25

A.Auto-30
-0.07045
0.069969
-0.02918
-0.2649
-0.02813
0.068413
-0.00207
0.09249
-0.10142
-0.05705
-0.08783
-0.17721
0.007098
0.048683
0.037318
0.136714
-0.04024
0.055384
0.106806
0.058244
-0.0263
0.264559
0.010887
-0.01334
0.00061
-0.01515
-0.01569
-0.03059
0.002392
A.Auto-30

D.Bank-25 DBBL-25

D.Bank-30
0.010953
-0.055
0.006515
-0.06625
0.007901
0.033503
-0.01714
-0.00108
-0.08087
-0.04423
-0.06407
-0.07816
0.152995
0.092047
0.036337
-0.25148
0.005254
0.07821
0.063586
0.031038
0.021852
0.040278
0.04078
-0.01283
0.069004
0.023785
-0.02692
-0.04027
0.024275
D.Bank-30

DBBL-30
-0.02065
0.015467
-0.02449
-0.0638
0.038694
0.100424
0.09815
0.003113
-0.07711
-0.04072
-0.08904
-0.1275
-0.15585
0.067776
-0.00257
0.056865
-0.02345
0.052097
0.068983
0.031819
0.047222
0.063459
0.006688
-0.04405
0.020164
0.009498
-0.03057
0.002694
0.016689
DBBL-30

Covariance
Covariance of A.Auto-25,D.Bank-25

0.002023392

0.001459

Covariance of A.Auto-25,DBBL-25

0.025211109

0.003656

Covariance of D.Bank-25,DBBL-25

0.005399761

0.000454

Table-07: Calculation of covariance using past data

All Standard Deviation

A.Auto-25

0.242287

D.Bank-25

0.118192421 DBBL-25

0.161249

A.Auto-30

0.095042

D.Bank-30

0.071329905 DBBL-30

0.061439

Corelation
Auto calc
Cor of A.Auto-25,D.Bank-25 0.070658

auto calc
0.215158

Cor of A.Auto-30,D.Bank-30

Cor of A.Auto-25,DBBL-25

0.645303

Cor of A.Auto-30,DBBL-30

0.626035

Cor of D.Bank-25,DBBL-25

0.283326

Cor of D.Bank-30,DBBL-30

0.103641

Table-08: Calculation of correlation using past data

All StandardDeviation, Variance&Weight

A.Auto-25Std
A.Auto-25var

0.242287
0.058703

D.Bank-25std0.118192421
D.Bank-25var0.013969448

DBBL-25std 0.161249
DBBL-25var 0.026001

A.Auto-30std
A.Auto-30var

0.0950424
0.0090331

D.Bank-30std0.071329905
D.Bank-30var0.005087955

DBBL-30std 0.061439
DBBL-30var 0.003775

25days
Weight of A,B

A.Auto-25 D.Bank-25
0.5
0.5
A.Auto-25 DBBL-25
1
D.Bank-25 DBBL-25
1

Weight of A,C
Weight of B,C

30weeks
A.Auto-30 D.Bank-30
Weight of O,P
0.5
0.5
A.Auto-30 DBBL-30
Weight of O,Q
1
D.Bank-30 DBBL-30
Weight of P,Q
1

Portfolio(PortfolioRisk)
Cor of A.Auto-25,D.Bank-25

In percentage
0.134789 13.47891 Cor of A.Auto-30,D.Bank-30

Inpercentage
0.059416 5.941595

Cor of A.Auto-25,DBBL-25

0.161249

16.12494 Cor of A.Auto-30,DBBL-30

0.061439 6.143925

Cor of D.Bank-25,DBBL-25

0.161249

16.12494 Cor of D.Bank-30,DBBL-30

0.061439 6.143925

Table-09: Calculation of portfolio risk using past data

All cmpaniesExpectedReturn
A.Auto-25
A.Auto-30

A.Auto-25
0.013142
A.Auto-30
0.022704

D.Bank-25
D.Bank-25 0.021140997
D.Bank-30
D.Bank-30 0.165813852

DBBL-25
DBBL-25 0.019119
DBBL-30
DBBL-30 0.043814

Portfolio Expected Return

In Percentage
In Percentage
PorReturn of A.Auto-25,D.Bank-25
0.017141 1.714132 Por Ret of A.Auto-30,D.Bank-30
0.094259 9.425914
Por Return of A.Auto-25,DBBL-25
0.019119 1.911874 Port Ret of A.Auto-30,DBBL-30
0.043814 4.381367
Port Return of D.Bank-25,DBBL-25
0.019119 1.911874 Port Ret of D.Bank-30,DBBL-30
0.043814 4.381367
Table-10: Calculation of portfolio Expected Return using past data

Calculation market Standard deviation and Beta

market-25days
Date
40300
40330
40363
40391
40423
40454
40483
40513
40545
40575
40603
40636
40665
40695
40727
40756
40790
40818
40848
40878
40909
40940
40969
41000
41031

DSEG.IndexHPR
4623.845
5067.411
5160.054
5356.99
5669.864
6031.476
6611.167
7232.2
6888.252
6032.426
4646.669
5348.584
4983.484
4723.67
5126.848
5307.721
5185.094
4937.085
4347.338
4377.484
4458.997
3269.906
3810.737
4287.156
4367.959
R

R
0.095929897
0.018282125
0.038165674
0.058404737
0.063777936
0.096110851
0.093937042
-0.047557916
-0.124244275
-0.229718057
0.151057812
-0.068261182
-0.05213504
0.085352842
0.035279528
-0.023103545
-0.047831018
-0.119452646
0.006934396
0.018621107
-0.266672354
0.165396435
0.12502026
0.018847611

(R-R)
0.003839259
0.003839259
0.003839259
0.003839259
0.003839259
0.003839259
0.003839259
0.003839259
0.003839259
0.003839259
0.003839259
0.003839259
0.003839259
0.003839259
0.003839259
0.003839259
0.003839259
0.003839259
0.003839259
0.003839259
0.003839259
0.003839259
0.003839259
0.003839259

0.003839259
varience
stdev

Table-11: Calculation of market SD using recent 25 months data

0.008481
0.000209
0.001178
0.002977
0.003593
0.008514
0.008118
0.002642
0.016405
0.054549
0.021673
0.005198
0.003133
0.006644
0.000988
0.000726
0.00267
0.015201
9.58E-06
0.000219
0.073177
0.026101
0.014685
0.000225
0.277315
0.011555
0.107493

market-30week
Date
03-11-2011
17-11-2011
24-11-2011
30-11-2011
08-12-2011
15-12-2011
22-12-2011
29-12-2011
05-01-2012
12-01-2012
19-01-2012
26-01-2012
02-02-2012
09-02-2012
16-02-2012
23-02-2012
01-03-2012
08-03-2012
15-03-2012
22-03-2012
29-03-2012
05-04-2012
12-04-2012
19-04-2012
26-04-2012
03-05-2012
10-05-2012
17-05-2012
24-05-2012
31-05-2012

DSEG.Index
HPR
R
5208.966
5166.96 -0.00806
5373.304 0.039935
5236.758 -0.02541
4932.3 -0.05814
5000.178 0.013762
5232.384 0.046439
5257.606 0.00482
5467 0.039827
5114.491 -0.06448
4946.497 -0.03285
4486.984 -0.0929
3845.656 -0.14293
4010.797 0.042942
4259.048 0.061896
4367.814 0.025538
4553.767 0.042573
4345.014 -0.04584
4543.449 0.04567
4759.143 0.047473
4990.325 0.048576
5098.913 0.02176
5343.6 0.047988
5367.524 0.004477
5163.432 -0.03802
5161.225 -0.00043
5076.628 -0.01639
4991.793 -0.01671
4797.921 -0.03884
4734.333 -0.01325
R

(R-R)
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849
-0.002088849

-0.00209
varience
stdev

-0.005975283
0.042024169
-0.023323156
-0.056049767
0.015850832
0.048528268
0.006909239
0.04191568
-0.062390475
-0.030757826
-0.090807871
-0.140841863
0.045031023
0.063984691
0.027626391
0.044662302
-0.043752881
0.047758356
0.049562346
0.05066528
0.023848541
0.050076898
0.006566104
-0.035934693
0.001661459
-0.014302106
-0.014622048
-0.03674923
-0.011164377
(R-R)
(R-R)/n
(R-R)/n

Table-12:
Calculation of market SD using last 30 weeks data

Market covariance:
A.Auto-25
0.272114546
-0.109182507
0.234603376
0.470071557
0.113989634
0.02303905
-0.262963034
0.006631522
-0.270889853
-0.439666009
0.597300829
-0.141867044
-0.098294931
0.104395504
0.023840912
-0.080463758
-0.100749292
-0.192019342
-0.044619326
-0.244146649
-0.328546379
0.125775508
0.137267298
0.204378389

A.Auto-25

D.Bank-25 DBBL-25
0.26
0.15381
0.02 0.002799
-0.04 -0.01611
0.05 0.053364
0.12 0.107437
0.11 0.165134
0.18 0.041445
-0.08 -0.01544
-0.11 -0.07802
-0.11 -0.48235
-0.30 0.326956
-0.08 -0.08409
0.01
-0.0599
0.11 0.080031
0.05 0.046207
-0.05 0.029021
-0.08
-0.0496
0.08 -0.11342
0.01 -0.06826
0.00 0.222485
-0.22
-0.3062
-0.02 -0.09622
0.04 0.135185
0.02 0.005724

market-25
0.092091
0.014443
0.034326
0.054565
0.059939
0.092272
0.090098
-0.0514
-0.12808
-0.23356
0.147219
-0.0721
-0.05597
0.081514
0.03144
-0.02694
-0.05167
-0.12329
0.003095
0.014782
-0.27051
0.161557
0.121181
0.015008

D.Bank-25 DBBL-25

market-25

A.Auto-30
D.Bank-30 DBBL-30 market-30
-0.070453886 0.010953 -0.02065 -0.00598
0.069969368
-0.055 0.015467 0.042024
-0.0291809 0.006515 -0.02449 -0.02332
-0.264899892 -0.06625
-0.0638 -0.05605
-0.028127775 0.007901 0.038694 0.015851
0.068412794 0.033503 0.100424 0.048528
-0.002073092 -0.01714 0.09815 0.006909
0.092490461 -0.00108 0.003113 0.041916
-0.101421042 -0.08087 -0.07711 -0.06239
-0.057053021 -0.04423 -0.04072 -0.03076
-0.087834207 -0.06407 -0.08904 -0.09081
-0.17720524 -0.07816
-0.1275 -0.14084
0.007098236 0.152995 -0.15585 0.045031
0.04868345 0.092047 0.067776 0.063985
0.037317692 0.036337 -0.00257 0.027626
0.136713625 -0.25148 0.056865 0.044662
-0.040243436 0.005254 -0.02345 -0.04375
0.055384156
0.07821 0.052097 0.047758
0.106806068 0.063586 0.068983 0.049562
0.0582437 0.031038 0.031819 0.050665
-0.02629782 0.021852 0.047222 0.023849
0.264559134 0.040278 0.063459 0.050077
0.010886661
0.04078 0.006688 0.006566
-0.013344203 -0.01283 -0.04405 -0.03593
0.000610199 0.069004 0.020164 0.001661
-0.015154001 0.023785 0.009498
-0.0143
-0.015687964 -0.02692 -0.03057 -0.01462
-0.030591272 -0.04027 0.002694 -0.03675
0.002392208 0.024275 0.016689 -0.01116
A.Auto-30
D.Bank-30 DBBL-30 market-30

Market Beta
Market Coveriance

Market Beta

Covof A.Auto-25,market-25

0.018692 Betaof A.Auto-25,market-25

Coveriance of D.Bank-25,market-25

0.005479 Betaof D.Bank-25,market-25

Coveriance of DBBL-25,market-25

0.013897 Betaof DBBL-25,market-25

Coveriance of A.Auto-25,market-25

0.003606 Betaof A.Auto-30,market-30

Coveriance of D.Bank-30,market-30

0.001429 Betaof D.Bank-30,market-30

Coveriance of DBBL-30,market-30

0.001988 Betaof DBBL-30,market-30

Market Variance-25

(R-R)/n 0.011554803

Market Variance-30

(R-R)/n 0.002318096

Table-14: Calculation of market covariance and Beta using past data

Calculating Expected return, Standard Deviation based on FUTURE DATA:

Probabilty(p)
weak
medium
strong

Probabilty(p)
weak
medium
strong

Probabilty(p)
weak
medium
strong

DBBL25months
Return( Ri)
R
0.75
0.02134
0.2
0.08544
0.05
0.13545
R
0.080743333
Expectedreturn
D.Bank25months
Return( R)
R
0.6
0.025545
0.25
0.13656
0.15
0.1854563
R
0.115853767
Expectedreturn
A.Auto-25months
Return( R)
R
0.65
0.019251
0.25
0.145654
0.1
0.215445
R
0.126783333
Expectedreturn
market-25months
Return( R)
R
0.7
0.005565
0.2
0.009654
0.1
0.0105654
R
0.0085948

(R-R)
p*(R-R)
0.04515 0.000567 0.000425
0.04515 0.001623 0.000325
0.04515 0.008154 0.000408
SD (p*(R-R
))0.034023
0.001158
0.0398655
(R-R)
p*(R-R)
0.115853767 0.008156 0.004893
0.115853767 0.000429 0.000107
0.115853767 0.004845 0.000727
SD (p*(R-R
))0.075679
0.005727
0.077285445
(R-R)
p*(R-R)
0.126783333 0.011563 0.007516
0.126783333 0.000356
8.9E-05
0.126783333 0.007861 0.000786
SD (p*(R-R
))0.091603
0.008391
0.07047115

(R-R)
p*(R-R)
0.0085948 9.18E-06 6.43E-06
0.0085948 1.12E-06 2.24E-07
0.0085948 3.88E-06 3.88E-07
SD (p*(R-R
))0.002653
7.04E-06
Expectedreturn
0.00688284
Table-15: Calculating expected return, Standard Deviation using future 25 months data
Probabilty(p)
weak
medium
strong

DBBL30weeks
Probabilty(p)
Return ( R) R
weak
0.65
0.05545
medium
0.25
0.1165
strong
0.1 0.145595
R
0.1058483
Expectedreturn
D.Bank30weeks
Probabilty(p)
Return ( R) R
weak
0.5 0.1674584
medium
0.35 0.182656
strong
0.15
0.21354
R
0.1878848
Expectedreturn
A.Auto-30weeks
Probabilty(p)
Return ( R) R
weak
0.6
0.2356
medium
0.3
0.15611
strong
0.1 0.243265
R
0.2116583
Expectedreturn
market-30weeks
Probabilty(p)
Return ( R) R
weak
0.35 -0.002155
medium
0.3 0.0003489
strong
0.35
0.00449
R
0.0008948
Expectedreturn

R-R

p*(R-R)
0.105848333
-0.050398333 0.001651
0.105848333
0.010651667 2.84E-05
0.105848333
0.039746667 0.000158
SD
0.042864
var
0.001837
0.079727
R-R
0.1878848
0.1878848
0.1878848
SD
var

p*(R-R)
-0.0204264 0.000209
-0.0052288 9.57E-06
0.0256552 9.87E-05
0.017802
0.000317

0.1796898
R-R

p*(R-R)
0.211658333
0.023941667 0.000344
0.211658333
-0.055548333 0.000926
0.211658333
0.031606667 9.99E-05
SD
0.037007
var
0.00137
0.2125195
R-R
0.0008948
0.0008948
0.0008948
SD
var

p*(R-R)
-0.0030493 3.25E-06
-0.0005459 8.94E-08
0.0035952 4.52E-06
0.002805
7.87E-06

0.000922095

Table-16: Calculating expected return, Standard Deviation using future 30 weeks data

Calculating Correlation, Covariance, Market Beta, Portfolio Risk and Return

based on FUTURE DATA:
CoverianceandCorelation
A.Auto-25 D.Bank-25 DBBL-25
-0.10753 -0.09031 -0.02381
0.018871 0.020706
0.04029
0.088662 0.069603
0.0903

A.Auto-30 D.Bank-30 DBBL-30

0.023942 -0.02043 -0.05039833
-0.05555 -0.00523 0.010651667
0.031607 0.025655 0.039746667

Covariance
Covarianceof A.Auto-25,D.Bank-25 0.005424 Covarianceof A.Auto-30,D.Bank-30

0.000204095

Covarianceof A.Auto-25,DBBL-25

0.003776 Covarianceof A.Auto-30,DBBL-30

-0.000180681

Covarianceof D.Bank-25,DBBL-25

0.00309 Covarianceof D.Bank-30,DBBL-30

0.00066449

All StandardDeviation
A.Auto-25

0.091603

D.Bank-25

0.075679

DBBL-25

0.034022763

A.Auto-30

0.037007

D.Bank-30

0.017802

DBBL-30

0.042864193

Corelation
Cor of A.Auto-25,D.Bank-2
05
.998458

Cor of A.Auto-30,D.Bank-30

Cor of A.Auto-25,DBBL-250.995594

Cor of A.Auto-30,DBBL-30

-0.122069234

Cor of D.Bank-25,DBBL-250.988852

Cor of D.Bank-30,DBBL-30

0.922636968

Table 17: Calculation of correlation and covariance Based on probability

0.270159797

Weight
25days
A.Auto-25 D.Bank-25
Weight of A,B
0.4
0.6
A.Auto-25 DBBL-25
Weight of A,C
0.3
0.7
D.Bank-25 DBBL-25
Weight of B,C
0.4
0.6

30weeks A.Auto-30
D.Bank-30
Weight of O,P
0.3
0.7
A.Auto-30
DBBL-30
Weight of O,Q
0.6
0.4
D.Bank-30
DBBL-30
Weight of P,Q
0.8
0.2

All StandardDeviation,Variance
A.Auto-25Std0.091603 sd
A.Auto-25var0.008391 ver

D.Bank-25std0.075679 sd
D.Bank-25var0.005727 ver

DBBL-25std
DBBL-25var

0.034022763
0.001157548

A.Auto-30std0.037007 sd
A.Auto-30var 0.00137 ver

D.Bank-30std0.017802 sd
D.Bank-30var0.000317 ver

DBBL-30std
DBBL-30var

0.042864193
0.001837339

Portfolio(PortfolioRisk)
Inpercentage
Inpercentage
Cor of A.Auto-25,D.Bank-2
05
.082017 8.201734 Cor of A.Auto-30,D.Bank-3
00
.018796191
1.879619057
Cor of A.Auto-25,DBBL-250.051241

5.124073 Cor of A.Auto-30,DBBL-30 0.02634486

2.634485955

Cor of D.Bank-25,DBBL-250.050549

5.054905 Cor of D.Bank-30,DBBL-300.022396722

2.239672198

All cmpaniesExpectedReturn
A.Auto-25
0.013142
A.Auto-30
A.Auto-30
0.21252

D.Bank-25
0.077285
D.Bank-30
D.Bank-30
0.17969

A.Auto-25

D.Bank-25

DBBL-25
DBBL-30

DBBL-25
0.0398655
DBBL-30
0.079727

PortfolioExpectedReturn
PorReturnof A.Auto-25,D0
.B
.0
a5
n1
k6
-2
25
8

InPercentage
InPercentage
5.162791 Por Ret of A.Auto-30,D.Bank
0.1
-38
0953871
18.953871

Por Returnof A.Auto-25,D0

B
.0
B3
L1
-2
85
48

3.184833 Port Ret of A.Auto-30,DBBL-3

00
.1594025

15.94025

Port Returnof D.Bank-25,D

0.0
BB
5L
4-2
83
53

5.483348 Port Ret of D.Bank-30,DBBL0

-3
.1
05969724

15.969724

Table 17: Calculation of portfolio expected risk and return Based on probability

Analysis of Probability:
For measuring probability, we analysis the previous 2 years prices of the shares. We estimate the
probability for next 2 years.
In the case of aftab automobiles, we saw that the price of the share is reducing constantly. Its
return is negative and risk is high. So we estimate that possibility of reducing of the price of
share is very high and we are more risk averse, so take more probability in weak point.
In the case of Dhaka Bank Limited, we saw that the price of this share is fluctuating in a limited
range. So take equal probability in weak and medium point and less probability in strong point,
because we are more risk averse.
In the case of Dutch-Bangla bank Limited, condition of the price of this share is good. Especially
last 6 months, price of this share was increasing averagely. So we take more probability in strong
and medium point.

The best combination of two assets based on risk and return:

Portfolio(PortfolioRisk)
In percentage
In percentage
Cor of A.Auto-25,D.Bank-2
0.1
534789 13.47891 Cor of A.Auto-30,D.Bank-3
0.0
059416 5.941595
Cor of A.Auto-25,DBBL-20
5.161249 16.12494 Cor of A.Auto-30,DBBL-30.061439 6.143925
Cor of D.Bank-25,DBBL-20
5.161249 16.12494 Cor of D.Bank-30,DBBL-30.061439 6.143925

PortfolioExpectedReturn
In Percentage
In Percentage
PorReturn of A.Auto-25,D
0.0
.B1
a7
nk-2
1415 1.714132 Por Ret of A.Auto-30,D.B0
a.0
nk-3
9420
59 9.425914
Por Returnof A.Auto-25,D
0.0
B1
B9
L1
-2
15
9 1.911874 Port Ret of A.Auto-30,DB0B
.0
L-3
430
814 4.381367
Port Return of D.Bank-250,D
.0B
1B
91
L-2
195 1.911874 Port Ret of D.Bank-30,DB0B
.0
L-3
430
814 4.381367

Comment: Based on the calculative result on basis of past data, the best two assets combination
is Aftab Auto mobiles and Dhaka Bank (based on 30 weeks data).

Our Investment Allocation

There are some criteria to analysis where we put our money:
1. The Bank deposit rate is 12.00%.
a. Where govt. kept 10% on interest.
b. And bank cut almost 10% service charges.

So, at last if any one invests in bank s/he will get only .8% or around 1% interest.
2.

The 10 years Treasury bond interest rate is 11.15%, which is risk free and there is no
deduction.

3. The probability calculative result shows better return in future.

Portfolio(PortfolioRisk)probabilitybase
In percentage
In percentage
Cor of A.Auto-25,D.Bank-2
0.0
582017 8.201734 Cor of A.Auto-30,D.Bank-3
0.0
018796 1.879619
Cor of A.Auto-25,DBBL-20
5.051241 5.124073 Cor of A.Auto-30,DBBL-30.026345 2.634486
Cor of D.Bank-25,DBBL-20
5.050549 5.054905 Cor of D.Bank-30,DBBL-30.022397 2.239672

PortfolioExpectedReturn(probabilitybase)
In Percentage
In Percentage
PorReturn of A.Auto-25,D
0.0
.B5
a1
nk-2
6285 5.162791 Por Ret of A.Auto-30,D.B0
a.1
nk-3
8950
39 18.95387
Por Return of A.Auto-25,D
0.0
B3
B1
L8
-2
45
8 3.184833 Port Ret of A.Auto-30,DB0B
.1
L-3
590
403 15.94025
Port Return of D.Bank-250,D
.0B
5B
48
L-2
335 5.483348 Port Ret of D.Bank-30,DB0B
.1
L-3
590
697 15.96972

So, considering the above criteria, as we are risk taker, we decide to invest our money in
Portfolio Aftab Auto-mobiles Limited and Dhaka Bank Limited and our investment weight is .30
and .70. Portfolio return of this portfolio will be 18.953871 and risk will be 1.87961905651969
that less risky than other portfolio. Coefficient of variance and co-relation are also lower of this
portfolio. Similarly Beta of both shares is also low. Market beta of Aftab Auto-mobiles is
1.61771 and Dhaka Bank is 0.474209.

On the other hand, we again calculated the HPR of both shares in May 02, 2010.

Comment on the Overall all Impact of Different Information and events on

Bangladesh Stock Market

The situation of our economy is not good, but the condition of our stock markets is very
good because of over cash flow in the market.

Recently SEC reduces the loan ratio 1:1.5 to 1:1. For that reason, markets are fallen down
for short time. But the market is now very well.

Sometimes markets were fallen down in last 3 months for different rumours. But these
was in short term not in long term.

Problems of Stock Markets in Bangladesh:

The unexpected rise and fall in share prices mostly followed from the general confidence of the
investors about political stability, euphoria of investment in shares, prospect of quick capital
gains, a vacuum in respect of institutional presence in the share market, monopolistic dominance
of member brokers, inefficiency of the SECS to cape with the developments, existence to Kerb
market, absence of proper application of circuit breaker etc. Delivery versus payment mechanism
was used as one of the main vehicles of manipulation. Kerb market gave birth fake and forged
share certificates. Although there are increasing trends in all the indicators, DSE, CSE are not
free from problems, the problems of DSE, CSE may be summarized as under:
Price manipulation

It has been observed that the share value of some profitable companies has been increase
fictitiously some items that hampers the smooth operation of Stock market.
Delays in Settlement:
Financing procedures and delivery of securities sometimes take an unusual long time for which
the money is blocked from nothing.
Irregulations in Dividends:
Some companies do not hold Annual General Meeting (AGM) and eventually declare dividends
that confused the shareholders about the financial positions of the company
Selection of Membership:
Some members being the directors of listed companies of DSE, CSE look for their own interest
using their internal information of share market.
Improper financial statement:
Many companies do not focus real position of the company as some audit firms involve
incorruption while preparing financial statements. As a result the shareholders as well as
investors do not have any idea about position of that company.

Opportunities
The capital markets in Asia are getting more and more focus with the growing corporatization of
the Asian economies. Eastern Asia has progressed a lot with respect to attracting western
companies to get listed in Asian bourses as well as supporting innovative instruments, and
Southeast Asia is also coming up with India leading the way. Comparing the local market
scenario with that of the rest of the region, Bangladesh is in pretty good shape as we have most
of the infrastructure in place. Our market capitalization is relatively smaller and it currently
stands at $3.34 billion, which is just over 34 percent of GDP. Higher liquidity is skewed towards
a handful of scraps, while a stagnant situation exists for few less profitable issuers.

At present, the government is heavily focusing on developing a debt capital market. Such
measures are certainly welcome as Bangladesh lacks a proper secondary market for bonds. The
market is yet to support short-term capital requirements of corporations. Commercial Paper (CP)
has not yet been tried primarily due to interest rate volatility and illiquid risk-free instruments
that can be used as benchmark neither for short-term and hardly for long-term financing. It can,
therefore, be said that we have a somewhat flat yield curve in Bangladesh at the moment. Debut
trading of state-owned oil companies like Jamuna Oil Company Ltd and Meghna Petroleum
Limited on the local bourses in January 2008 has spurred a lot of encouragement among
investors. This initiative taken by the government to list SOEs will increase market capitalization
and improved liquidity.
SEC is also contemplating the introduction of the book-building method in the valuation of IPOs
in order to ensure a fair price within this year. This will encourage companies with sound
financial health to come into the market. Regulatory pressures are mounting on telecom
companies to get listed. It is estimated that the listing of the top telecom companies will attract
more foreign investment, increase the market capitalization by few folds, and bring about higher
standards of corporate governance. There is still huge potential in the market for securitization
and other debt instruments like commercial papers and corporate bonds, and derivatives, which
will help foreign investors, hedge their exposure.

Importance of securities market in Bangladesh

Analyzing the equity market in Bangladesh appears to be relevant in view of on-going structural
adjustment, financial liberalization and economic deregulation policy adopted by the government
of Bangladesh in the last one and a half decade. These reforms aim at macroeconomic
stabilization in a free market economy, where stock market reform and development can play a
vital role.
In order to support the stock market activity towards growing liberal policy for investment and as
vehicles for effective privatization, understanding prevailing stock price behavior and the

requirements of making securities market effective ones in terms of liquidity and

competitiveness is a must. This paper is a modest attempt towards these ends.
This paper eventually throws some light on the perceived dominant problems faced by
Bangladesh securities market (BSM), issues to be addressed for restoring investors confidence
and potentiality of growing BSM as an emerging market. In doing s, the paper draws attention of
the research findings on securities market and is based on logical arguments put forward and
observations being made by the author and interviews with diverse groups of market participants.

Conclusion
This assignment describes financial market specially capital market in Bangladesh. It provides
knowledge about the stock market of Bangladesh, growth and trend of securities market in
Bangladesh, and government effort for stronger securities market in Bangladesh. In recent days
capital market developed in Bangladesh rapidly. But lot of problem faces capital market in
Bangladesh. It also discusses importance of Securities Market in Bangladesh, relative
contribution of stock market.
Finally, we can say that it is not possible to identify the best investment opportunity in the
market. So in this report paper we just decide to invest in a portfolio, after analyzing different

things and based on our estimation. We can not say that it the best investment opportunity. But
we try our best to analysis the portfolios.