Purpose: To allow students to demonstrate an understanding of the various portfolio analysis techniques applicable to real world situations, enabling them to analyse the performance of selected shares and the overall portfolio against a market benchmark. Students will also be required to communicate their findings in a written report. The assessment will reflect the advice that would be expected from students when, after graduation, they are working in a modern accounting practice. This assessment relates to learning outcomes a, b, c and d.
Topic: Analysis of an Investment Portfolio and Recommendations for the Future.
At the end of 2009, on the advice of a friend, your uncle invested $600,000 in a portfolio of 3 shares –
$200,000 in BHP, $200,000 in CSL (Commonwealth Serum Laboratories) and $200,000 in WBC (Westpac). The share prices than, and at the end of each year since, are shown below.