A project on portfolio management

1. Final project of portfolio
Management
Presented to:
Professor Alamdar Ali
Presented by:
Nermeen Amjad (S2F16MCOM0001)
Aqsa Arshad (S2f16mcom0019)

2. Sector of industry:
Nature of business:
• Company X:
Technology and communication
• Company Y:
Food and personal care products

3. Introduction of Companies
Pakistan Telecommunication Company Limited
Pakistan Telecommunication Company Limited (PTCL) is a
Pakistan-based telecommunication operator.
The Company offers personal and business services.
Its solutions include hosted solution and business connectivity. It
also offers international business and business communication
services

4. Overview of PTCL:
• REVENUE IN PKR
(TTM)118.24bn
• INCORPORATED1995
• NET INCOME IN PKR4.16bn
• EMPLOYEES19.02k
• WEBSITEhttps://www.ptcl.co
m.pk/
• LOCATIONPakistan
Telecommunication Company
LtdPTCL Headquarters, Block-
E, G-8/4,ISLAMABAD
44000PakistanPAK
• Headquarters: Islamabad
• CEO: Daniel Ritz (Mar 3,
2016–)
• Number of
employees: Over 18000
• Founded: 1947
• Subsidiaries:
• Ufone, PTCL Smart
TV, MORE
• Parent organization:
Etisalat International
Pakistan LLC

5. Clover Pakistan Limited
Clover Pakistan Limited is primarily involved in the manufacture
and sale of food products.
It has successfully entered the export market, selling food and
personal care products to African and Middle Eastern markets.
The company's major production is the powdered soft drink,
TANG, a trademark of Kraft Food.

6. Overview of clover:
• REVENUE IN PKR
(TTM)8.50k
• INCORPORATED1986
• NET INCOME IN PKR3.91m
• EMPLOYEES9.00

7. Pakistan Stock Exchange Limited
 Pakistan Stock Exchange Limited (PSX) (formerly: Karachi Stock Exchange
(Guarantee) Limited (KSE) was established on September 18, 1947.
 It was incorporated on March 10, 1949. Only five companies were initially
listed with a total paid-up capital of 37 million rupees.
 The first index introduced in KSE was based on fifty companies and was
called KSE 50 index. Trading used to be carried out on open out-cry system.
 Computerized trading system called Karachi Automated Trading System
(KATS) was introduced in 2002 with a capacity of 1.0 million trades per day
and the ability to provide connectivity to an unlimited number of users.

8. Rate of Return
The rate of return is the amount you receive after the
cost of an initial investment, calculated in the form of a
percentage. The percentage can be reflected as a positive,
which is considered a gain or profit. When the
percentage is negative, it reflects a loss. This information
is very useful in determining whether or not the initial
investment you made was a good one.
Formula
RR = P1-P0 *100
P0

9. Average
The word “average” is used in everyday life to describe
where the middle number of a data set is. It’s the typical
number you would expect to find in a series of numbers.
In statistics, the average is called the “arithmetic mean,”
usually just shortened to the mean. Both the average and
the mean use the same.
Formula

10. Variance
Variance measures how far a data set is spread out. The
technical definition is “The average of the squared
differences from the mean,” but all it really does is to
give you a very general idea of the spread of your data. A
value of zero means that there is no variability; All the
numbers in the data set are the same.
Formula:

11. Standard Deviation
Standard deviation is a measure of dispersement in
statistics. “Dispersement” tells you how much your data
is spread out. Specifically, it shows you how much your
data is spread out around the mean or average.
Formula:

12. Covariance
Covariance is a measure of how much two random
variables vary together. It’s similar to variance, but
where variance tells you how a single variable varies, co
variance tells you how two variables vary together.
Formula:

13. Correlation
Correlation, in the finance and investment industries, is
a statistic that measures the degree to which two
securities move in relation to each other. Correlations
are used in advanced portfolio management computed as
the correlation coefficient, which has value that must fall
between -1 and 1.
Formula:

14. Portfolio risk
Each investment carries a risk of loss. The higher the
potential returns, the higher the risk. If you hold a
portfolio with many investments, each of those
investments carries its own risk. All of the investment
risks combined result in an overall risk you have exposed
your portfolio to. You must monitor your portfolio risk to
make sure you have a variety of investments whose high
and low risks offset each other
Formula:

15. Portfolio Return
Portfolio return is the monetary return experienced by a
holder of a portfolio. Portfolio returns can be calculated
on a daily or long-term basis to serve as a method of
assessing a particular investment strategy. Dividends
and capital appreciation are the main components of
portfolio returns.
Formula
RP = w1R1 + w2R2

16. Calculation
Company X
Pakistan
telecommunication
limited (1st to 4th week)
Company Y
Clover Pakistan limited
(1st to 4th week)