Each group member will need to separately select six companies’ shares in London Stock Exchange, two of low risk, two of medium risk and two of high risk.

This coursework is to be done in groups of THREE students and it accounts for 30% of your
final grade.
The group will be expected to submit a report of maximum 3000 words, together with
appropriate spreadsheet calculations. The main report must be word-processed and presented
in a suitable way using tables, charts/diagrams, if considered necessary to support your
explanations. There is no minimum size (brief and pithy reports are sometimes really
outstanding), but reports which exceed 3000 words will be penalised. (There is no limit on
what can be put into the appendices to the main report).
The group will be expected to make a short presentation of their coursework prior
submission. Each presentation will be for no more than 15 minutes and should be punchy and
to the point – please avoid long, rambling discourses.
Presentation will take place in week 17during the seminar time. Reports and spreadsheets
must be submitted online via module page on My Learning by 23:59 pm Friday, 26th
February 2016.
In order to complete this coursework you will need to access companies’ 5 year
historical share prices and annual reports.
Required:
1. Each group member will need to separately select six companies’ shares in London
Stock Exchange, two of low risk, two of medium risk and two of high risk. By putting
together the shares chosen by all group members, you should now have a portfolio
made up of 18 shares.
Identify in your submission the choice of shares made by each group member. Justify
your selection (*).
(20 marks)
Instruction:
Any company can be chosen. Risk should be evaluated by reference to the company’s
beta, which can be obtained from a simple regression in excel to measure the share’s
volatility in relation to the market.
By definition, the market has a beta of 1.0, and individual stocks are ranked according
to how much they are responsive to the market change.
Marks will be given for correctly determining the risk of the shares chosen.