Escolar Documentos
Profissional Documentos
Cultura Documentos
BBAP4103
Class :
Lecturer:
Page
Financing
Return on asset: The return on assets ratio, often called the return on
total assets, is a profitability ratio that measures the net income
produced by total assets during a period by comparing net income to
the average total assets. In other words, the return on assets ratio or
ROA measures how efficiently a company can manage its assets to
produce profits during a period.
In 2012
Month Price Dividend Dividend yield Capital gain Total return
(RM) (RM) % % K
January 5.38 1.38 0.256 0.029 0.285
February 6.32 1.37 0.216 0.042 0.258
March 6.31 1.36 0.215 0.032 0.247
April 6.45 1.35 - -0.006 -0.006
May 6.71 1.39 0.207 0.046 0.252
June 6.56 1.36 0.062 0.050 0.112
July 5.47 0.92 0.207 0.123 0.330
August 6.67 0.98 - -0.033 -0.033
September 6.35 1.20 0.018 0.223 0.241
October 5.58 1.34 0.240 0.024 0.264
November 6.71 1.37 - -0.029 -0.029
December 6.43 1.38 0.215 0.031 0.246
Average return
=
0.285 + 0.258 + 0.247 -0.006 +0.252 + 0.112 +0.33 0.033 + 0.241 + 0.246- 0.029 + 0.246
INVESTMENT ANALYSIS | BBAP4103 6
12
= 0.181 or 18.1%
Return
(R) Deviation
2
Period ( R R )
R
(R )
Average
Variance
R 0.181 0.011
)
Standard
Deviation ( 0.104
In 2013
Dividend Capital Total
Price Dividend
Month yield gain return
(RM) (RM) % % K
January 6.26 1.41 0.225 0.043 0.268
Average return
=
0.268 +0.271 -0.047 +0.264+0.234+0.273-0.123+0.237+0.342-0.075+0.237+0.248
=0.177 or 17.7%
12
Return
(R)
Deviation ( R 2
Period
R ( R R )
)
Average
R 0.177 Variance ) 0.008
Standard
0.091
Deviation (
We aim to deliver the best experience to help our customers across Malaysia
to harness the capabilities of mobile Internet anytime, anywhere and on any
device.
Keep Promises
Make It Easy
- We aim for simplicity in the way we work, and in offering products and
services that are easy to understand and easy to use.
Be Respectful
Be Inspiring
- We bring passion, energy, and creativity into everything we do, and make
every effort to constantly drive change and continuous improvement.
Code of conduct
1
INVESTMENT ANALYSIS | BBAP4103
0
Digi is committed to conducting its business in accordance with the highest
ethical standards and maintaining a workplace environment that encourages
open and honest communication.
As part of this commitment, Digi has adopted the Digi Code of Conduct
which defines the core principles and ethical standards that form the basis on
how Digi creates its value. The Code applies to members of the Board of
Directors, managers, and other employees as well as those acting on behalf
of Digi.
Digi will never compromise on its integrity and shall take all action it
considers appropriate to investigate any misconducts reported due to
violations of this Code.
1
INVESTMENT ANALYSIS | BBAP4103
1
Average return
0.261+0.301+0.339-0.007-0.145+0.224+0.276+0.343+0.305+0.268+0.324-0.039
=
12
=0.204 or 20.4%
Return Deviation
Period (R) ( R R )
(R R )
Variance
Average 0.204 0.003
R )
Standard
Deviation( 0.057
2013
1
INVESTMENT ANALYSIS | BBAP4103
2
(RM) (RM) % % K
January 5.02 1.42 0.283 0.009 0.292
February 4.88 1.41 0.289 0.076 0.365
March 4.98 1.43 0.287 0.243 0.530
April 5.12 1.39 _ -0.123 -0.123
May 5.16 1.35 0.262 0.087 0.349
June 4.77 1.38 _ -0.009 -0.009
July 4.95 1.4 0.283 0.245 0.528
August 5.01 1.45 0.289 0.046 0.335
September 5.03 1.42 0.282 0.124 0.406
October 4.99 1.43 0.287 0.035 0.322
November 5.02 1.44 _ -0.036 -0.036
December 4.96 1.38 _ -0.057 -0.057
Average return
2.292+0.365+0.53-0.123+0.349-0.009+0.528+0.335+0.406+0.322-0.036-0.057
=
12
=0.241 or 24.1%
2
Return ( R R )
Deviation ( R
Period (R)
R )
1
INVESTMENT ANALYSIS | BBAP4103
3
11 -0.036 -0.277 0.077
12 -0.057 -0.298 0.089
Total 2.902
Variance
Average 0.241 0.003
R )
Standard
Deviation( 0.051
1
INVESTMENT ANALYSIS | BBAP4103
4
Risk is an inherent part of investing. In order to get a reasonable return on an
investment, risk has to be present. A riskless asset will produce little or no
return. The intelligent investor manages risk by recognizing its existence,
measuring its degree in any given investment and realistically assessing his
or her capacity to take risk. A prudent investor will seek to match and/or
offset risk by assembling a reasonable number of mutual funds with
favorable risk-return profiles in a diversity of fund categories. This is done
by first identifying a mix of mutual funds according to company size
(market-cap), investing style (value, growth, and blend) and asset allocation
(stock and bond).
The risk of capital loss: a capital loss is the loss incurred when a capital
asset, such as an investment or real estate, decreases in value; this loss is not
realized until the asset is sold for a price that is lower than the original
purchase price. A capital loss is essentially the difference between the
purchase price and the price at which the asset is sold, where the sale price is
lower than the purchase price. For example, if an investor bought a house for
$250,000 and sold the house five years later for $200,000, the investor
realizes a capital loss of $50,000.
Volatility risk: the risk that the holder of an option is exposed to based on
the potential for the volatility of the underlying security or the market's
perception of that volatility to change. It is a rate at which the price of a
security increases or decreases for a given set of returns. Volatility is
measured by calculating the standard deviation of the annualized returns
over a given period of time. It shows the range to which the price of a
security may increase or decrease.
Timing risk: timing risk is a type of risk most often seen in growth asset
classes such as shares or property. Values in these asset classes can be
volatile, and this volatility means that there is a chance that prices will fall
between two time periods.
For example, shares in a company might fall in market value from $10 at
time A, to $5 at time B. An investor who bought at time A and then needed to
sell at time B will lose 50% of their investment. If the investor does not sell
at point B, and prices then rise again to $15 at point C, then the investor has
1
INVESTMENT ANALYSIS | BBAP4103
5
made 50% on their investment. However, the investor has still missed out
by virtue of the fact that he or she would have made a higher profit had they
invested at point B. In this way, it can be seen that the point of time at which
a share is bought has a substantial impact on the value of that share.
Understanding business cycles and how different companies perform may be
truly useful to handle the sequence of timing risk.
The risk of poor quality advice: are the investment recommendations made
to they supported by a thoroughly argued case, or are they merely hearsay?
The more reliable information they have, the better the decisions will be.
Adopting a disciplined decision-making process will help them to minimize
losses while they patiently build a portfolio. Recommendations involving
high rates of investment return can fail to produce satisfactory results when
taxation, ongoing fees and constant changes in investment cycles affect the
performance.
Currency risk: Currency risks are risks that arise from changes in the
relative valuation of currencies. These changes can create unpredictable
gains and losses when the profits or dividends from an investment are
converted from a foreign currency into U.S. dollars. Investors can reduce
currency risk by using hedges and other techniques designed to offset any
currency-related gains or losses.
Strategic Risk: strategic risk is the risk of not achieving the Groups
corporate strategic goals. The Groups overall strategic planning reflects the
Groups vision and mission, taking into consideration the Groups internal
capabilities and external factors. The Board is actively involved in setting of
strategic goals, and is regularly updated on matters affecting corporate
strategy implementation and corporate projects/initiatives.
1
INVESTMENT ANALYSIS | BBAP4103
6
and business partners and the conduct of our business activities. The Group
seeks to maintain its reputation by screening potential clients and business
partners and by conducting our business activities in accordance with high
ethical standards and regulatory requirements.
Material Risks
Systematic risk: The risk inherent to the entire market or entire market segment
Also known as "un- diversifiable risk" or "market risk." Systematic risk is also
referred as uncontrollable risk. Systematic is non diversifiable and is associated
with the securities market as well as economic, sociological, political and legal
considerations of the prices of all securities
1
INVESTMENT ANALYSIS | BBAP4103
7
Market risk: Market risk as that portion of total variability of return caused by
the alternating forces of bull and bear markets. When the security index moves
upward haltingly for a significant period of time, it is known as bull market, the
index moves from a down level to the peak. Bear market is just is a reverse to
the bull market, the index decline haltingly from the peak to a market low point
called through for a significant period of time. During the bull and bear market
more than 80% of the security prices rise or fall along with the stock market
indices
Interest rate risk: Interest rate risk is the variation in the single period rates of
return caused by the fluctuation in the market interest rate. Most commonly
interest rate risk affects the price of bounds, debentures and stocks. The
fluctuations in the interest rates are caused by the changes in the government
monetary policy and the changes that occur in the interest rates of treasury bills
and the government bonds. The bonds issued by the government and quasi
government are considered to be risk free. If higher interest rates are offered,
investors would like to switch his investments from private sector bounds to
public sector bounds.
Internal business risk: Internal business risk associated with the operational
efficiency of the firm. The operational efficiency differs from company to
company.
VI. Conclusion
1
INVESTMENT ANALYSIS | BBAP4103
8
In conclusion, this assignment contains five sections. Firstly, it is
introduction of the company including AMBANK and HIGI company. This
section gives out general information about the companys business
activities, vision as well as the companys business development. Following
that is the computation of average returns, variance, standard deviation and
correlation between the returns for the shares of AMBANK. Next, it's the
computation of average returns, variance, standard deviation and correlation
between the returns for the shares of the HIGI. This is followed by
comparison and evaluation of the riskiness for each share. At the end is
summary section.
References
1
INVESTMENT ANALYSIS | BBAP4103
9
https://en.wikipedia.org/wiki/AmBank
https://en.wikipedia.org/wiki/Digi_Telecommunications
http://www.investopedia.com/terms/c/capital-investment-analysis.asp
http://www.investopedia.com/terms/i/investment-analysis.asp
https://strategiccfo.com/investment-analysis/
http://www.investopedia.com/walkthrough/corporate-finance/4/return-
risk/expected-return.aspx
http://www.investopedia.com/exam-guide/cfa-level-1/portfolio-
management/portfolio-calculations.asp
http://www.investopedia.com/articles/financial-theory/11/calculating-
covariance.asp
http://thismatter.com/money/investments/portfolios.htm
http://www.aaii.com/computerizedinvesting/article/mean-variance-
optimization-multi-asset-portfolio
http://mathworld.wolfram.com/Covariance.html
http://www.investopedia.com/ask/answers/050615/what-metrics-should-i-
use-evaluate-risk-return-tradeoff-mutual-fund.asp
http://www.investopedia.com/articles/08/performance-measure.asp
http://www.asx.com.au/data/accessibility/course_03_etext.htm
http://www.davyselect.ie/investment-choices/risks/risks-of-investing-in-
shares.html
http://www.investopedia.com/terms/s/speculativestock.asp
http://www.getsmarteraboutmoney.ca/en/managing-your-
money/investing/stocks/Pages/Risks-of-stocks.aspx#.WBN4e3dh3LY
2
INVESTMENT ANALYSIS | BBAP4103
0