ASSIGNMENT

Assignment



Assignment

Company Name

Closing Price

Number of Shares Acquired

Beta

Value of Investment

Stock Weight

Weighted Average Beta

 

 

 

 

 

 

 

CHAMBERLIN PLC 144.50 150

1.3

21675

0.22

0.28

CHRISTIE GROUP 61.00 174

1.4

10614

0.11

0.15

ADEPT TELECOM 35.75 120

0.9

4290

0.04

0.04

ALLIANCE PHARMA 27.25 137

1.7

3733.25

0.04

0.06

BAYFIELD ENERGY HLDGS PLC 74.50 181

0.6

13484.5

0.13

0.08

BEOWULF MINING 30.50 130

1.1

3965

0.04

0.04

DQ ENTERTAINMENT PLC 72.50 135

1.5

9787.5

0.10

0.15

HEAVITREE BREWERY

167.50 150

0.8

25125

0.25

0.20

STEPPE CEMENT 40.50 160

0.75

6480

0.06

0.05

MANX FINANCIAL GROUP PLC 8.38 101

1

845.875

0.01

0.01

 

 

 

 

 

 

 

Total

 

1,438

 

100000

 

1.062

Stock Closing Price: July 5, 2011

Stock Closing Price: August 26, 2011

Company Name

Closing Price

Number of Shares Acquired

Beta

Value of Investment

Stock Weight

Weighted Average Beta

 

 

 

 

 

 

 

CHAMBERLIN PLC 129.50 150

1.3

19425

0.21

0.28

CHRISTIE GROUP 54.00 174

1.4

9396

0.10

0.14

ADEPT TELECOM 33.00 120

0.9

3960

0.04

0.04

ALLIANCE PHARMA 28.88 137

1.7

3956.56

0.04

0.07

BAYFIELD ENERGY HLDGS PLC 60.00 181

0.6

10860

0.12

0.07

BEOWULF MINING 25.25 130

1.1

3282.5

0.04

0.04

DQ ENTERTAINMENT PLC 72.00 135

1.5

9720

0.11

0.16

HEAVITREE BREWERY

167.50 150

0.8

25125

0.27

0.22

STEPPE CEMENT 32.25 160

0.75

5160

0.06

0.04

MANX FINANCIAL GROUP PLC 7.75 101

1

782.75

0.01

0.01

 

 

 

 

 

 

 

Total

 

1,438

 

91668

 

1.071

Influence of Share Price Change

When we compare the prices of the 10 selected companies we can observe the change in the stock prices of the companies. The major change was in CHAMBERLIN PLC in which stock price decreased to 129.5 from 144.5. The stock price of Bayfield Energy HLDGS PLC decreases to 60 from 74.5. While other companies such as Christie Group, Adept Telecom, Alliance Pharma, Beowulf Mining, Steppe Cement, Manx Financial Group Plc have a slight change in prices. The stock prices of DQ Entertainment PLC and Heavitree Brewery did not change at all (London Stock Exchange, 2011).

This change in stock prices also brings a major effect on the overall portfolio. The numbers of total share 1438 were bought on July 5, 2011 for £ 100000, while the same number of shares are available for £ 91668. The Weighted Average Beta slightly increases to 1.071, which was previously 1.062. Portfolio beta describes relative volatility of an individual securities portfolio, taken as a whole, as measured by the individual stock betas of the securities making it up. A beta of 1.071 increases by 10% the portfolio is expected to increase by 10.71%.

Causes of fluctuations in stock price

The stock price fluctuates because of the dynamics of supply and demand for it, which moved the company reports, news, technical indicators and the mood of the crowd. Causes of fluctuations in the stock price at the low-lying level - supply and demand. Demand exists, when traders and investors want to buy cheaper and sell dearer then waiting a price increase on the stock. A proposal appears when investors and traders are waiting for the fall, ...