Portfolio Analysis; AMP’s quantitative analysis, has developed a portfolio construction model about which he is excited
Order Instructions: Portfolio Analysis; AMP’s quantitative analysis, has developed a portfolio construction model about which he is excited
Part 1 (7 marks)
James T, AMP’s quantitative analysis, has developed a portfolio construction model about which he is excited. To create the model, James made a list of the stocks currently in the ASX SPI 200 Index and obtained annual operating cash flow, price, and total return data for each issue for the past five years. As of each year-end, this universe was divided into five equal-weighted portfolios of 40 issues each, with selection based solely on the price/cash flow rankings of the individual stocks. Each portfolio’s average annual return was then calculated.
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