Arslan - the University of Manchester
The University of Manchester
BMAN23000 Foundations of Finance
Semester 2, 2012-2013
Group-based assignment
Please Read This Document Carefully
This document describes the coursework component for BMAN23000 which counts for 20% of the final mark for the course. You are required to complete this coursework in groups. You will be randomly allocated to a coursework group of approximately 6 fellow students in the same workshop. Details of coursework groups and companies allocated to each coursework group will be available on Blackboard (in a file called Group and Company Allocation). Details of the assignment are given below. The assignment will be discussed in detail in Workshop 1 in Week 4.
Assignment
Each coursework group will be allocated two real-life companies that are publicly traded on a U.S. stock market. To find out the names of your group’s two companies, please visit the BMAN23000 Blackboard site: the names of the companies allocated to each coursework group, and the names of the students allocated to each coursework group, are given in the Group and Company Allocation file available from the BMAN23000 Blackboard site. The file indicates which of the two real-life companies you should treat as “Company A” and which as “Company B”. Besides the company names, the Group and Company Allocation file also provides the companies’ identifiers: their PERMNO and GVKEY; these identifiers are used to collect company data from the databases as described below. No further data (besides that in the Group and Company Allocation file) is provided. It is the responsibility of each team (and all team members) to collect all necessary data required to complete the assignment. Suitable databases are available and described below.
Part 1
To complete this part, you will require data on your two companies’ monthly common-stock returns from January 2002 to December 2011.
Required:
a) Suppose you are advising an investor who wants to invest all her wealth in the stock
BMAN23000 Foundations of Finance
Semester 2, 2012-2013
Group-based assignment
Please Read This Document Carefully
This document describes the coursework component for BMAN23000 which counts for 20% of the final mark for the course. You are required to complete this coursework in groups. You will be randomly allocated to a coursework group of approximately 6 fellow students in the same workshop. Details of coursework groups and companies allocated to each coursework group will be available on Blackboard (in a file called Group and Company Allocation). Details of the assignment are given below. The assignment will be discussed in detail in Workshop 1 in Week 4.
Assignment
Each coursework group will be allocated two real-life companies that are publicly traded on a U.S. stock market. To find out the names of your group’s two companies, please visit the BMAN23000 Blackboard site: the names of the companies allocated to each coursework group, and the names of the students allocated to each coursework group, are given in the Group and Company Allocation file available from the BMAN23000 Blackboard site. The file indicates which of the two real-life companies you should treat as “Company A” and which as “Company B”. Besides the company names, the Group and Company Allocation file also provides the companies’ identifiers: their PERMNO and GVKEY; these identifiers are used to collect company data from the databases as described below. No further data (besides that in the Group and Company Allocation file) is provided. It is the responsibility of each team (and all team members) to collect all necessary data required to complete the assignment. Suitable databases are available and described below.
Part 1
To complete this part, you will require data on your two companies’ monthly common-stock returns from January 2002 to December 2011.
Required:
a) Suppose you are advising an investor who wants to invest all her wealth in the stock