INVESTMENT PORTFOLIO

Investment Portfolio Assignment

Investment Portfolio Assignment

Overview

A portfolio analysis is a useful tool in evaluating how an investment portfolio is performing in terms of rate of return and risk. Accomplished by looking not only at how the individual investments perform but also how they perform together, an analysis can identify underperforming or excessively risky assets and provide guidance as to where changes to your investment allocations should be made to keep you on track to meet your investment objectives (Sourd, 2007, 15-22). Although each individual investor has his own goals in terms of performance, a routine analysis can be useful for any portfolio regardless of its strategy. In this paper we will analyze the single asset portfolio (common share of HSBC Holding Plc). We chose HSBC Holding Plc because the company is among largest banks of the world, and since last year the stock prices of the company are performing well. In this analysis, we have divided the stock performance of the bank into 3 phases. Each phase contain share price of 4 weeks (1 month). We will analysis each phases on the basis of return.

Reason to choose HSBC

We think HSBC's focus on reach in recent years has led it to disastrous acquisitions (like Household in the U.S.) and to build nonstrategic operations, and we're pleased that its 2011 reorganization is aimed at refocusing the bank on its strengths--providing global financial services to corporate customers and building on its footprint in fast-growing markets. We think the streamlined strategy will free up capital to fuel growth in emerging markets and prepare for Basel III, while helping management to cut some of the fat out of its operations.

While we remain concerned about whether HSBC is too big to manage effectively, we're comforted by the bank's focus on plain vanilla corporate and retail banking rather than ...