Report Supriya.docx
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Q) Suppose you have Rs. 10,00,000 to invest in stock market. Form different portfolio individually (You need to purchase at least 10 stocks that are traded in Nepal Stock Exchange for forming a portfolio). You are required to compute daily return on each stock included in your portfolio. Also compare your average portfolio return with NEPSE average return for your study period. •
Note while calculating daily return use 7 daystrading price. (Use SPSS or Excel program as per your convenience).
•
Prepare a report and submit.
•
Solution: First of all, let’s calculate average 7 day return from NEPSE index. S.N.
1 2 3 4 5 6 7 8
Date
31-Mar-19 28-Mar-19 27-Mar-19 26-Mar-19 25-Mar-19 24-Mar-19 21-Mar-19 19-Mar-19
NEPSE Value (in Rs)
HPR (in %)
1,143.59 1,143.10 1,142.61 1,140.72 1,138.67 1,134.80 1,140.60 1,147.15 Total HPR Average HPR
-0.042848 -0.042866 -0.165411 -0.179711 -0.33987 0.511103 0.574259 0.314657 0.044951
Therefore, the 7-day average NEPSE index return is 0.044951%. Note: Formula for HPR is, Holding Period Return (HPR) = (Final value of NEPSE index- Initial Value of NEPSE index)/ Initial Value of NEPSE index*100%
Now, we need to calculate the return from our portfolio. We have Rs. 10 lacs which we need to invest in 10 different listed companies in NEPSE. Our investment portfolio is given below: S.N.
Security Name Nepal Doorsanchar Comapany Limited
Symbol
2
Nepal Investment Bank Limited
NIB
3
Nabil Bank Limited
NABIL
4
Nepal Life Insurance Co. Ltd.
NLIC
5
Standard Chartered Bank Limited
SCB
6
Everest Bank Limited
EBL
7
Himalayan Bank Limited
HBL
8
NIC Asia Bank Ltd.
NICA
9
Nepal SBI Bank Limited
SBI
10
NMB Bank Limited
NMB
1
NTC
Total
Invested amount (Rs)
100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00
1,000,000.00
Weights
0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
1
The portfolio return is calculated as below:
S.N.
Date
Security Name
Symbol
31-Mar-19
Nepal Doorsanchar Comapany Limited
NTC
2
31-Mar-19
Nepal Investment Bank Limited
NIB
3
31-Mar-19
Nabil Bank Limited
NABIL
4
31-Mar-19
Nepal Life Insurance Co. Ltd.
NLIC
5
31-Mar-19
Standard Chartered Bank Limited
SCB
6
31-Mar-19
Everest Bank Limited
EBL
7
31-Mar-19
Himalayan Bank Limited
HBL
8
31-Mar-19
NIC Asia Bank Ltd.
NICA
9
31-Mar-19
Nepal SBI Bank Limited
SBI
10
31-Mar-19
NMB Bank Limited
NMB
S.N.
Date
1
Security Name
Symbol
1
28-Mar-19
Nepal Doorsanchar Comapany Limited
NTC
2
28-Mar-19
Nepal Investment Bank Limited
NIB
3
28-Mar-19
Nabil Bank Limited
NABIL
4
28-Mar-19
Nepal Life Insurance Co. Ltd.
NLIC
5
28-Mar-19
Standard Chartered Bank Limited
SCB
6
28-Mar-19
Everest Bank Limited
EBL
7
28-Mar-19
Himalayan Bank Limited
HBL
8
28-Mar-19
NIC Asia Bank Ltd.
NICA
9
28-Mar-19
Nepal SBI Bank Limited
SBI
10
28-Mar-19
NMB Bank Limited
NMB
S.N.
Date
Security Name
Symbol
1
27-Mar-19
Nepal Doorsanchar Comapany Limited
NTC
2
27-Mar-19
Nepal Investment Bank Limited
NIB
3
27-Mar-19
Nabil Bank Limited
NABIL
4
27-Mar-19
Nepal Life Insurance Co. Ltd.
NLIC
5
27-Mar-19
Standard Chartered Bank Limited
SCB
6
27-Mar-19
Everest Bank Limited
EBL
7
27-Mar-19
Himalayan Bank Limited
HBL
8
27-Mar-19
NIC Asia Bank Ltd.
NICA
9
27-Mar-19
Nepal SBI Bank Limited
SBI
10
27-Mar-19
NMB Bank Limited
NMB
Closing Price in (Rs)
HPR(in %)
Portfolio Return (in %)
HPR(in %)
Portfolio Return (in %)
687 528 712 1093 565 561 458 400 387 328 Closing Price in (Rs)
685 530 714 1099 568 558 460 398 391 327 Closing Price in (Rs)
-0.291121 0.15791228 0.3787879 0.2808989 0.5489478 0.5309735 -0.534759 0.4366812 -0.5 1.0335917 -0.304878 HPR(in %)
Portfolio Return (in %)
680 -0.729927 0.41321749 528 -0.377358 709 -0.70028 1095 -0.363967 570 0.3521127 556 -0.358423 455 -1.086957 398 0 390 -0.255754 325 -0.611621
S.N.
Date
Security Name
Symbol
1
26-Mar-19
Nepal Doorsanchar Comapany Limited
NTC
2
26-Mar-19
Nepal Investment Bank Limited
NIB
3
26-Mar-19
Nabil Bank Limited
NABIL
4
26-Mar-19
Nepal Life Insurance Co. Ltd.
NLIC
5
26-Mar-19
Standard Chartered Bank Limited
SCB
6
26-Mar-19
Everest Bank Limited
EBL
7
26-Mar-19
Himalayan Bank Limited
HBL
8
26-Mar-19
NIC Asia Bank Ltd.
NICA
9
26-Mar-19
Nepal SBI Bank Limited
SBI
10
26-Mar-19
NMB Bank Limited
NMB
S.N.
Date
Security Name
Symbol
1
25-Mar-19
Nepal Doorsanchar Comapany Limited
2
25-Mar-19
Nepal Investment Bank Limited
NIB
3
25-Mar-19
Nabil Bank Limited
NABIL
4
25-Mar-19
Nepal Life Insurance Co. Ltd.
NLIC
5
25-Mar-19
Standard Chartered Bank Limited
SCB
6
25-Mar-19
Everest Bank Limited
EBL
7
25-Mar-19
Himalayan Bank Limited
HBL
8
25-Mar-19
NIC Asia Bank Ltd.
NICA
9
25-Mar-19
Nepal SBI Bank Limited
SBI
10
25-Mar-19
NMB Bank Limited
NMB
S.N.
Date
Security Name
NTC
Symbol
1
24-Mar-19
Nepal Doorsanchar Comapany Limited
2
24-Mar-19
Nepal Investment Bank Limited
NIB
3
24-Mar-19
Nabil Bank Limited
NABIL
4
24-Mar-19
Nepal Life Insurance Co. Ltd.
NLIC
5
24-Mar-19
Standard Chartered Bank Limited
SCB
6
24-Mar-19
Everest Bank Limited
EBL
7
24-Mar-19
Himalayan Bank Limited
HBL
8
24-Mar-19
NIC Asia Bank Ltd.
NICA
9
24-Mar-19
Nepal SBI Bank Limited
SBI
10
24-Mar-19
NMB Bank Limited
NMB
NTC
Closing Price in (Rs)
HPR(in %)
Portfolio Return (in %)
680 0 0.01542525 527 -0.189394 712 0.4231312 1087 -0.730594 564 -1.052632 555 -0.179856 461 1.3186813 398 0 391 0.2564103 325 0 Closing Price in (Rs)
674 530 712 1083 568 553 459 398 395 322 Closing Price in (Rs)
678 530 712 1072 558 555 460 396 385 318
HPR(in %)
Portfolio Return (in %)
-0.882353 0.06091913 0.56926 0 -0.367985 0.7092199 -0.36036 -0.433839 0 1.0230179 -0.923077 HPR(in %)
Portfolio Return (in %)
0.5934718 0.58796543 0 0 -1.015697 -1.760563 0.3616637 0.2178649 -0.502513 -2.531646 -1.242236
S.N.
Date
Security Name
Symbol
1
21-Mar-19
Nepal Doorsanchar Comapany Limited
NTC
2
21-Mar-19
Nepal Investment Bank Limited
NIB
3
21-Mar-19
Nabil Bank Limited
NABIL
4
21-Mar-19
Nepal Life Insurance Co. Ltd.
NLIC
5
21-Mar-19
Standard Chartered Bank Limited
SCB
6
21-Mar-19
Everest Bank Limited
EBL
7
21-Mar-19
Himalayan Bank Limited
HBL
8
21-Mar-19
NIC Asia Bank Ltd.
NICA
9
21-Mar-19
Nepal SBI Bank Limited
SBI
10
21-Mar-19
NMB Bank Limited
NMB
S.N.
Date
1 2 3 4 5 6 7 8 9 10
19-Mar19 19-Mar19 19-Mar19 19-Mar19 19-Mar19 19-Mar19 19-Mar19 19-Mar19 19-Mar19 19-Mar19
Security Name
Symbol
Closing Price in (Rs)
677 530 710 1073 571 552 462 395 392 321 Closing Price in (Rs)
Portfolio Return (in %)
HPR(in %)
-0.147493 0 -0.280899 0.0932836 2.3297491 -0.540541 0.4347826 -0.252525 1.8181818 0.9433962
0.4501604
Portfolio Return (in %)
HPR(in %)
Nepal Doorsanchar Comapany Limited
NTC
673
Nepal Investment Bank Limited
NIB
535 0.9433962
Nabil Bank Limited
NABIL
723 1.8309859
Nepal Life Insurance Co. Ltd.
NLIC
1097 2.2367195
Standard Chartered Bank Limited
SCB
577 1.0507881
Everest Bank Limited
EBL
548
Himalayan Bank Limited
HBL
465 0.6493506
NIC Asia Bank Ltd.
NICA
399 1.0126582
Nepal SBI Bank Limited
SBI
392
NMB Bank Limited
NMB
-0.590842 0.67199454
-0.724638
0
322 0.3115265 Total Portfolio 0.20253993 Average Portfolio Return 0.02893428
Therefore, the 7-day average portfolio return is 0.02893428 % which is lesser than 7-day average NEPSE index return which is 0.044951%.
Note while calculating daily return use 7 daystrading price. (Use SPSS or Excel program as per your convenience).
•
Prepare a report and submit.
•
Solution: First of all, let’s calculate average 7 day return from NEPSE index. S.N.
1 2 3 4 5 6 7 8
Date
31-Mar-19 28-Mar-19 27-Mar-19 26-Mar-19 25-Mar-19 24-Mar-19 21-Mar-19 19-Mar-19
NEPSE Value (in Rs)
HPR (in %)
1,143.59 1,143.10 1,142.61 1,140.72 1,138.67 1,134.80 1,140.60 1,147.15 Total HPR Average HPR
-0.042848 -0.042866 -0.165411 -0.179711 -0.33987 0.511103 0.574259 0.314657 0.044951
Therefore, the 7-day average NEPSE index return is 0.044951%. Note: Formula for HPR is, Holding Period Return (HPR) = (Final value of NEPSE index- Initial Value of NEPSE index)/ Initial Value of NEPSE index*100%
Now, we need to calculate the return from our portfolio. We have Rs. 10 lacs which we need to invest in 10 different listed companies in NEPSE. Our investment portfolio is given below: S.N.
Security Name Nepal Doorsanchar Comapany Limited
Symbol
2
Nepal Investment Bank Limited
NIB
3
Nabil Bank Limited
NABIL
4
Nepal Life Insurance Co. Ltd.
NLIC
5
Standard Chartered Bank Limited
SCB
6
Everest Bank Limited
EBL
7
Himalayan Bank Limited
HBL
8
NIC Asia Bank Ltd.
NICA
9
Nepal SBI Bank Limited
SBI
10
NMB Bank Limited
NMB
1
NTC
Total
Invested amount (Rs)
100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00
1,000,000.00
Weights
0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
1
The portfolio return is calculated as below:
S.N.
Date
Security Name
Symbol
31-Mar-19
Nepal Doorsanchar Comapany Limited
NTC
2
31-Mar-19
Nepal Investment Bank Limited
NIB
3
31-Mar-19
Nabil Bank Limited
NABIL
4
31-Mar-19
Nepal Life Insurance Co. Ltd.
NLIC
5
31-Mar-19
Standard Chartered Bank Limited
SCB
6
31-Mar-19
Everest Bank Limited
EBL
7
31-Mar-19
Himalayan Bank Limited
HBL
8
31-Mar-19
NIC Asia Bank Ltd.
NICA
9
31-Mar-19
Nepal SBI Bank Limited
SBI
10
31-Mar-19
NMB Bank Limited
NMB
S.N.
Date
1
Security Name
Symbol
1
28-Mar-19
Nepal Doorsanchar Comapany Limited
NTC
2
28-Mar-19
Nepal Investment Bank Limited
NIB
3
28-Mar-19
Nabil Bank Limited
NABIL
4
28-Mar-19
Nepal Life Insurance Co. Ltd.
NLIC
5
28-Mar-19
Standard Chartered Bank Limited
SCB
6
28-Mar-19
Everest Bank Limited
EBL
7
28-Mar-19
Himalayan Bank Limited
HBL
8
28-Mar-19
NIC Asia Bank Ltd.
NICA
9
28-Mar-19
Nepal SBI Bank Limited
SBI
10
28-Mar-19
NMB Bank Limited
NMB
S.N.
Date
Security Name
Symbol
1
27-Mar-19
Nepal Doorsanchar Comapany Limited
NTC
2
27-Mar-19
Nepal Investment Bank Limited
NIB
3
27-Mar-19
Nabil Bank Limited
NABIL
4
27-Mar-19
Nepal Life Insurance Co. Ltd.
NLIC
5
27-Mar-19
Standard Chartered Bank Limited
SCB
6
27-Mar-19
Everest Bank Limited
EBL
7
27-Mar-19
Himalayan Bank Limited
HBL
8
27-Mar-19
NIC Asia Bank Ltd.
NICA
9
27-Mar-19
Nepal SBI Bank Limited
SBI
10
27-Mar-19
NMB Bank Limited
NMB
Closing Price in (Rs)
HPR(in %)
Portfolio Return (in %)
HPR(in %)
Portfolio Return (in %)
687 528 712 1093 565 561 458 400 387 328 Closing Price in (Rs)
685 530 714 1099 568 558 460 398 391 327 Closing Price in (Rs)
-0.291121 0.15791228 0.3787879 0.2808989 0.5489478 0.5309735 -0.534759 0.4366812 -0.5 1.0335917 -0.304878 HPR(in %)
Portfolio Return (in %)
680 -0.729927 0.41321749 528 -0.377358 709 -0.70028 1095 -0.363967 570 0.3521127 556 -0.358423 455 -1.086957 398 0 390 -0.255754 325 -0.611621
S.N.
Date
Security Name
Symbol
1
26-Mar-19
Nepal Doorsanchar Comapany Limited
NTC
2
26-Mar-19
Nepal Investment Bank Limited
NIB
3
26-Mar-19
Nabil Bank Limited
NABIL
4
26-Mar-19
Nepal Life Insurance Co. Ltd.
NLIC
5
26-Mar-19
Standard Chartered Bank Limited
SCB
6
26-Mar-19
Everest Bank Limited
EBL
7
26-Mar-19
Himalayan Bank Limited
HBL
8
26-Mar-19
NIC Asia Bank Ltd.
NICA
9
26-Mar-19
Nepal SBI Bank Limited
SBI
10
26-Mar-19
NMB Bank Limited
NMB
S.N.
Date
Security Name
Symbol
1
25-Mar-19
Nepal Doorsanchar Comapany Limited
2
25-Mar-19
Nepal Investment Bank Limited
NIB
3
25-Mar-19
Nabil Bank Limited
NABIL
4
25-Mar-19
Nepal Life Insurance Co. Ltd.
NLIC
5
25-Mar-19
Standard Chartered Bank Limited
SCB
6
25-Mar-19
Everest Bank Limited
EBL
7
25-Mar-19
Himalayan Bank Limited
HBL
8
25-Mar-19
NIC Asia Bank Ltd.
NICA
9
25-Mar-19
Nepal SBI Bank Limited
SBI
10
25-Mar-19
NMB Bank Limited
NMB
S.N.
Date
Security Name
NTC
Symbol
1
24-Mar-19
Nepal Doorsanchar Comapany Limited
2
24-Mar-19
Nepal Investment Bank Limited
NIB
3
24-Mar-19
Nabil Bank Limited
NABIL
4
24-Mar-19
Nepal Life Insurance Co. Ltd.
NLIC
5
24-Mar-19
Standard Chartered Bank Limited
SCB
6
24-Mar-19
Everest Bank Limited
EBL
7
24-Mar-19
Himalayan Bank Limited
HBL
8
24-Mar-19
NIC Asia Bank Ltd.
NICA
9
24-Mar-19
Nepal SBI Bank Limited
SBI
10
24-Mar-19
NMB Bank Limited
NMB
NTC
Closing Price in (Rs)
HPR(in %)
Portfolio Return (in %)
680 0 0.01542525 527 -0.189394 712 0.4231312 1087 -0.730594 564 -1.052632 555 -0.179856 461 1.3186813 398 0 391 0.2564103 325 0 Closing Price in (Rs)
674 530 712 1083 568 553 459 398 395 322 Closing Price in (Rs)
678 530 712 1072 558 555 460 396 385 318
HPR(in %)
Portfolio Return (in %)
-0.882353 0.06091913 0.56926 0 -0.367985 0.7092199 -0.36036 -0.433839 0 1.0230179 -0.923077 HPR(in %)
Portfolio Return (in %)
0.5934718 0.58796543 0 0 -1.015697 -1.760563 0.3616637 0.2178649 -0.502513 -2.531646 -1.242236
S.N.
Date
Security Name
Symbol
1
21-Mar-19
Nepal Doorsanchar Comapany Limited
NTC
2
21-Mar-19
Nepal Investment Bank Limited
NIB
3
21-Mar-19
Nabil Bank Limited
NABIL
4
21-Mar-19
Nepal Life Insurance Co. Ltd.
NLIC
5
21-Mar-19
Standard Chartered Bank Limited
SCB
6
21-Mar-19
Everest Bank Limited
EBL
7
21-Mar-19
Himalayan Bank Limited
HBL
8
21-Mar-19
NIC Asia Bank Ltd.
NICA
9
21-Mar-19
Nepal SBI Bank Limited
SBI
10
21-Mar-19
NMB Bank Limited
NMB
S.N.
Date
1 2 3 4 5 6 7 8 9 10
19-Mar19 19-Mar19 19-Mar19 19-Mar19 19-Mar19 19-Mar19 19-Mar19 19-Mar19 19-Mar19 19-Mar19
Security Name
Symbol
Closing Price in (Rs)
677 530 710 1073 571 552 462 395 392 321 Closing Price in (Rs)
Portfolio Return (in %)
HPR(in %)
-0.147493 0 -0.280899 0.0932836 2.3297491 -0.540541 0.4347826 -0.252525 1.8181818 0.9433962
0.4501604
Portfolio Return (in %)
HPR(in %)
Nepal Doorsanchar Comapany Limited
NTC
673
Nepal Investment Bank Limited
NIB
535 0.9433962
Nabil Bank Limited
NABIL
723 1.8309859
Nepal Life Insurance Co. Ltd.
NLIC
1097 2.2367195
Standard Chartered Bank Limited
SCB
577 1.0507881
Everest Bank Limited
EBL
548
Himalayan Bank Limited
HBL
465 0.6493506
NIC Asia Bank Ltd.
NICA
399 1.0126582
Nepal SBI Bank Limited
SBI
392
NMB Bank Limited
NMB
-0.590842 0.67199454
-0.724638
0
322 0.3115265 Total Portfolio 0.20253993 Average Portfolio Return 0.02893428
Therefore, the 7-day average portfolio return is 0.02893428 % which is lesser than 7-day average NEPSE index return which is 0.044951%.
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