Assignment ObjectivesrnYou are given a notional SGD 100,000 to invest on the Singapore stock market in shares selected from the list of shares in the FTSE ST ALL Share index (listed on the SGX). You need to split your investment 50:50 between two portfolios of shares, one where you selected the shares by technical analysis and the other by fundamental analysis. Your aim is to beat the market with both portfolios. It is important you can demonstrate that you know the difference between these methods. You need to compare and contrast the two portfolios and you need to make explicit reference to EMH in your analysis.rn rnSubmission RequirementsrnYou need to submit a 2000-word report on your trades , including full referenc ing according to HarvardrnIt needs to be submitted to Turnitin.rnAn appendix with a spreadsheets of your trades (these should not be submitted to turnitin)rn rnAssignment RequirementsrnYou are given a notional SGD100 ,000 to invest in the Singapore stockrnUse historical and live market data from Monday, 28 November 2016 to Friday,rn3 March 2017. This means that you are going to have to use short-term investment strategies. You have 2 weeks to finalize the report, but you should progressively do parts of the report as you trade during this period.rnThe aim is for you to try to beat the The market is represented by the FTSE ST ALL Share Index – if you do not ‘beat the market you will not lose marks, most people will find it impossible to do better than experienced investors. You must calculate the return on the market from your first trade to your last trade in order to determine whether you have beaten the market or not.rnThe shares MUST be listed on the FTSE ST ALL Share Index (SGX).rnYou are not allowed to use derivatives, such as options or any short selling.rn50% of your investment must be based upon fundamental analysis (min 2 techniques, max 3) and the other 50% on technical analysis(min 2 techniques, max 3) (Based on two theories – no more or less, just TWO).rnEach of your portfolios must contain 1O shares .rnYou are allowed to trade as many times as you l (you must trade at least once for each portfolio)rn rnRecommended FormatrnIntroduction – You need to explain the strategies you used and which if any of your portfolios beat the market. The target profit is a holding period return of at least 5 percent.rn[5 marks]rnLiterature Review – This section should provide theoretical and empirical evidence to demonstrate your understanding of EMH and Behavioural Finance and their conflicting view.rn[30 marks]rnRational and Methodology – How did you select the companies for your portfolios? You don’t have to give a list of every company and why, it should be in general. The detail should be in the appendix. You need to make reference to the technical theories you have used and justify your approach, this should be done by making direct references to the journal artic les read. [1O marks]rnResults and Analysis – Critically evaluate the performance of your two portfolios. Did they beat the market? Which was the best? Your results should be referenced back to the literature review you have read on the type of analysis you have used and on the EMH. [30 marks]rnConclusion – Provide an informed conclusion to your report. [5 marks] rnPresentation: Structure, clarity, use of grammar, correct spelling, referencing.rn[10 marks]rnAppendix – Spreadsheet of all of your trades, with notes on why you chose your companies. The spreadsheet needs to have profit and loss for each of your shares and should say your final profit. The spreadsheet needs to take account for trading costs, see below for details.[10 marks]rn rnTransaction costs – When you purchase shares you must also pay Stamp Duty of 0.2% of the purchase price. There is no Stamp Duty payable when you sell your shares.rn You should also assume that you buy your shares online through an internet broker. Assume that the broker charges you a flat fee of SGD10 .00 per trade, i.e. SGD10.00 when you buy and SGD10.00 when you sell.rn You can buy and sell in any amount you like. You do not have to buy in round amounts . For example, you could buy 798 shares or any other number you like.rn rnSources of Data – Obtain share prices and news from financial information sources like yahoo and Bloomberg.
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