BBA 5 (A)

Group # 002
Fizza Ateeq
Khadija Sikandar
Sara Mirza

FA09-BBA-111
FA09-BBA-041
FA09-BBA-082

Submitted to
Mam Humaira Kousar

Muslim Commercial Bank

Date
Stcoks
3/1/2007
247.25
31/01/07
297.95
28/02/07
293
30/03/07
270.65
30/04/07
298
31/05/07
340.95
29/06/07
365
31/07/07
324.6
31/08/07
311.5
28/09/07
333
31/10/07
380.1
30/11/07
372.3
31/12/07
399.95
31/01/08
388.5
29/02/08
435
31/03/08
415.5
30/04/08
415
30/05/08
274.41
30/06/08
326.38
31/07/08
271
29/08/08
243.6
30/09/08
235.75
31/10/08
235.75
28/11/08
232.75
31/12/08
125.81
30/01/09
94.5
27/02/09
126.81
31/03/09
141.2
30/04/09
161.78
29/05/09
161.64
30/06/09
155.03
31/07/09
160.92
31/08/09
204.91
30/09/09
221.08
30/10/09
213.2
26/11/09
215.12
31/12/09
219.68
29/01/10
213.85
26/02/10
213.46
31/03/10
209.04
30/04/10
211.25
31/05/10
176.9

D
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
12.5
6
6
6
6
6
6
6
6
6
6
6
6
12
12
12
12
12
12
12
12
12
12
12
12
12.5
12.5
12.5
12.5
12.5

Ry
---0.26
0.03
-0.03
0.15
0.19
0.11
-0.08
0
0.11
0.18
0.01
0.11
-0.01
0.14
-0.03
0.01
-0.32
0.21
-0.15
-0.08
-0.01
0.03
0.01
-0.43
-0.15
0.47
0.21
0.23
0.07
0.03
0.12
0.35
0.14
0.02
0.07
0.08
0.03
0.06
0.04
0.07
-0.1

P
KSE 100
10040.5
11272.33
11179.97
11271.59
12369.7
12961.26
12289.03
13738.87
12214.26
13351.79
14319.42
13998.52
14075.83
14017.01
14934.3
15125.29
15122.47
12130.51
12289.03
10583.58
9208.26
9179.68
9182.88
9187.1
5865.01
5377.42
5727.46
6860.22
7202.1
7276.61
7162.18
7720.93
8675.67
9349.68
9159.18
9206.21
9386.92
9614.19
9657.79
10178.43
10428.12
9326.42

Rx
---0.12
-0.01
0.01
0.1
0.05
-0.05
0.12
-0.11
0.09
0.07
-0.02
0.01
0
0.07
0.01
0
-0.2
0.01
-0.14
-0.13
0
0
0
-0.36
-0.08
0.07
0.2
0.05
0.01
-0.02
0.08
0.12
0.08
-0.02
0.01
0.02
0.02
0
0.05
0.02
-0.11

Date
3/1/2007
31/01/07
28/02/07
30/03/07
30/04/07
31/05/07
29/06/07
31/07/07
31/08/07
28/09/07
31/10/07
30/11/07
31/12/07
31/01/08
29/02/08
31/03/08
30/04/08
30/05/08
30/06/08
31/07/08
29/08/08
30/09/08
31/10/08
28/11/08
31/12/08
30/01/09
27/02/09
31/03/09
30/04/09
29/05/09
30/06/09
31/07/09
31/08/09
30/09/09
30/10/09
26/11/09
31/12/09
29/01/10
26/02/10
31/03/10
30/04/10
31/05/10

30/06/10
30/07/10
31/08/10
30/09/10
29/10/10
30/11/10
31/12/10

194.19
213.56
189.36
188.31
202.55
206.33
228.54

12.5
12.5
12.5
12.5
12.5
12.5
12.5

0.17
0.16
-0.05
0.06
0.14
0.08
0.17

Average Return
Standard Deviation
CV
Beta

0.04
0.08
-0.07
0.02
0.06
0.06
0.07

0.06
0.15
2.54
1.32

Portfolio Beta
Weightage A
Weightage B
Weightage C

9721.91
10519.02
9813.05
10013.31
10598.4
11234.76
12022.46

30/06/10
30/07/10
31/08/10
30/09/10
29/10/10
30/11/10
31/12/10
Average Return
Standard Deviation
CV
Beta

Correlation
25%
30%
45%

A,B
A,C
B,C

Portfolio Return
Portfolio Standard Deviation
Portfolio C.V
Portfolio Beta

0.74
0.37
0.43
0.09
0.11
1.3
1.07

INTERPRETATIONS
MUSLIM COMMERCIAL BANK
PAKISTAN STATE OIL
FAUJI FERTILIZERS COMPANY

PORTFOLIO

The Beta of MCB is greater than 1 which shows tha

1.32% change for MCB's Stocks.
The Beta of PSO is also gretaer than 1 so they are a
means that a 1% change in the market would resul
The Beta of Fauji Fertilizers Company is less than 1
will be less than the changes in the overall change i

The Overall Beta of The Portfolio is close to 1 which means that the changes in the m
the stocks caused a decline in the systematic risk of the stocks of Muslim Commerci
So for a risk averse investor the portfolio is a ideal investment opportunity as 1% cha

Pakistan State Oil

Stcoks
297.25
339.9
355.3
355.05
360.5
370
391.45
375.5
329
360.55
407.2
429.75
406.6
438.3
496
533.45
503
440
417.24
373.35
279.99
279.99
267.49
267.49
144.58
121.42
141.37
195.94
197.84
210.11
213.65
238.04
289.32
313.11
304.63
298.35
297.44
299.52
299.33
309.79
313.88
255

D
21
21
21
21
21
21
21
21
21
21
21
21
21
23.5
23.5
23.5
23.5
23.5
23.5
23.5
23.5
23.5
23.5
23.5
23.5
5
5
5
5
5
5
5
5
5
5
5
5
8
8
8
8
8

Ry
---0.21
0.11
0.06
0.07
0.08
0.11
0.01
-0.07
0.16
0.19
0.11
-0.01
0.14
0.19
0.12
-0.01
-0.08
0
-0.05
-0.19
0.08
0.04
0.09
-0.37
-0.13
0.21
0.42
0.04
0.09
0.04
0.14
0.24
0.1
-0.01
0
0.01
0.03
0.03
0.06
0.04
-0.16

Fauji Fertilizer
KSE 100
10040.5
11272.33
11179.97
11271.59
12369.7
12961.26
12289.03
13738.87
12214.26
13351.79
14319.42
13998.52
14075.83
14017.01
14934.3
15125.29
15122.47
12130.51
12289.03
10583.58
9208.26
9179.68
9182.88
9187.1
5865.01
5377.42
5727.46
6860.22
7202.1
7276.61
7162.18
7720.93
8675.67
9349.68
9159.18
9206.21
9386.92
9614.19
9657.79
10178.43
10428.12
9326.42

Rx
---0.12
-0.01
0.01
0.1
0.05
-0.05
0.12
-0.11
0.09
0.07
-0.02
0.01
0
0.07
0.01
0
-0.2
0.01
-0.14
-0.13
0
0
0
-0.36
-0.08
0.07
0.2
0.05
0.01
-0.02
0.08
0.12
0.08
-0.02
0.01
0.02
0.02
0
0.05
0.02
-0.11

Date
Stcoks
3/1/2007
105
31/01/07
112.1
28/02/07
108.55
30/03/07
105.55
30/04/07
115.3
31/05/07
118
29/06/07
121.25
31/07/07
124
31/08/07
113.9
28/09/07
115
31/10/07
124.65
30/11/07
123.2
31/12/07
118.75
31/01/08
125.5
29/02/08
136
31/03/08
140.5
30/04/08
141
30/05/08
128.95
30/06/08
132.32
31/07/08
127.02
29/08/08
103.25
30/09/08
100
31/10/08
100
28/11/08
100
31/12/08
58.73
30/01/09
86.35
27/02/09
73.16
31/03/09
86.92
30/04/09
97.82
29/05/09
102.62
30/06/09
86.95
31/07/09
94.91
31/08/09
96.82
30/09/09
102.75
30/10/09
105.03
26/11/09
107.02
31/12/09
102.93
29/01/10
105.9
26/02/10
103.9
31/03/10
109.69
30/04/10
113.04
31/05/10
102.91

260.2
287.05
248.51
268.7
265.73
284.4
295.18

Average Return
Standard Deviation

8
8
8
8
8
8
8

0.05
0.13
-0.11
0.11
0.02
0.1
0.07
0.05
0.12
2.34
1.13

9721.91
10519.02
9813.05
10013.31
10598.4
11234.76
12022.46

0.04
0.08
-0.07
0.02
0.06
0.06
0.07

30/06/10
30/07/10
31/08/10
30/09/10
29/10/10
30/11/10
31/12/10

103.07
112.52
106.07
104.84
106.52
112.87
125.86

Average Return
Standard Deviation
CV
Beta

reater than 1 which shows that the stock is Aggressive in nature and that it can be said that 1% change in market would result in
B's Stocks.
o gretaer than 1 so they are also Aggressive in nature yet the Aggressiveness of the stocks is less than those of MCB which
ge in the market would result in 1.13% change in the stock returns.
lizers Company is less than 1 so we conclude that the stock is Defensive in nature so change in the individual stocks of company
anges in the overall change in the market which is 1% change in the market would cause 0.88% change in the stocks.

eans that the changes in the market are almost equal to changes in the overall portfolio, the portfolio which came from diversifyi
stocks of Muslim Commercial Bank and Pakistan State Oil as well.
stment opportunity as 1% change in the market returns would result in 1.06% change in the returns of the Stock.

Fauji Fertilizers Company

D
11
11
11
11
11
11
11
11
11
11
11
11
11
6.5
6.5
6.5
6.5
6.5
6.5
6.5
6.5
6.5
6.5
6.5
6.5
14.15
14.15
14.15
14.15
14.15
14.15
14.15
14.15
14.15
14.15
14.15
14.15
15.5
15.5
15.5
15.5
15.5

Ry
---0.17
0.07
0.07
0.2
0.12
0.12
0.11
0.01
0.11
0.18
0.08
0.05
0.11
0.14
0.08
0.05
-0.04
0.08
0.01
-0.14
0.03
0.07
0.07
-0.35
0.71
0.01
0.38
0.29
0.19
-0.01
0.25
0.17
0.21
0.16
0.15
0.09
0.18
0.13
0.2
0.17
0.05

KSE 100
10040.5
11272.33
11179.97
11271.59
12369.7
12961.26
12289.03
13738.87
12214.26
13351.79
14319.42
13998.52
14075.83
14017.01
14934.3
15125.29
15122.47
12130.51
12289.03
10583.58
9208.26
9179.68
9182.88
9187.1
5865.01
5377.42
5727.46
6860.22
7202.1
7276.61
7162.18
7720.93
8675.67
9349.68
9159.18
9206.21
9386.92
9614.19
9657.79
10178.43
10428.12
9326.42

Rx
---0.12
-0.01
0.01
0.1
0.05
-0.05
0.12
-0.11
0.09
0.07
-0.02
0.01
0
0.07
0.01
0
-0.2
0.01
-0.14
-0.13
0
0
0
-0.36
-0.08
0.07
0.2
0.05
0.01
-0.02
0.08
0.12
0.08
-0.02
0.01
0.02
0.02
0
0.05
0.02
-0.11

15.5
15.5
15.5
15.5
15.5
15.5
15.5

0.15
0.24
0.08
0.13
0.16
0.21
0.25
0.12
0.14
1.14
0.88

ge in market would result in

an those of MCB which

individual stocks of company

ange in the stocks.

o which came from diversifying

of the Stock.

9721.91
10519.02
9813.05
10013.31
10598.4
11234.76
12022.46

0.04
0.08
-0.07
0.02
0.06
0.06
0.07