Financial markets investment analysis

Financial Markets Investment Analysis (MBA)

Assignment Questions:

(a) You will be given a company(AT&T Inc) on the New York Stock Exchange. Access data such as share prices and annual reports on the company from the public domain.Using the Market Model and weekly data over the last year find the beta of the company.
(20 marks)

(b) Research the concept of the US market risk premium and critically discuss the relevance of  this concept under existing market conditions.
(20 marks)

(c) Analyse the shape of  the US  yield curve(the most recently two year)and with reference to academic literature offer explanations for its shape.
(20 marks)

(d) Using the theory of the Capital Asset Pricing Model evaluate thecurrent price of the share and use it to make a recommendation on whether the share as at 1 Aug 2015, should be held, bought or sold.
(20 marks)

(e) Critically appraise all assumptions you have made in making your recommendation including a critical evaluationof the model used.
(20 marks)

Your individual assignment:

•    Gives you an opportunity to apply some of learning from the module to your chosen company.(AT&T Inc)
•    Harvard style of referencing should only be used, and Minimum reference required is 12 from books and journals

Assessment requirements:

•    The submission of your work should be organized and clearly structured.
•    The overall word limit is 2,000 words: this is about 8 A4 pages (size 12, times new roman, 1.5 line spacing).  The appendices will include a reference list and the weekly data on prices of the share the sector and the entire market.  The word count must appear on the top right hand corner of  page 1 of  your assignment. The pages must be numbered in the bottom right hand corner.  You name can appear in the assignment at the footer.
•    Indicate the sources of information and literature review by including all the necessary citations and references adopting the Harvard Referencing system.
•    Please note that this is an individual assignment and the policy of the University on Plagiarism and Academic Misconduct applies.
•    Students who have been found to have committed acts of Plagiarism are automatically considered to have failed the entire module.
•    Plagiarism involves taking someone else’s words, thoughts, ideas or essays from online essay banks and trying to pass them off as your own. It is a form of cheating which is taken very seriously.
•    Marks will be deducted for poor presentation and inadequate referencing.
•    All workings must be shown.

Assignment Structure:

•    Introduction.
•    The context of your chosen listed company.(AT&T Inc)
•    Attempts at parts (a), (b) and (c).
o    with reference to academic literature, critical discussion of your findings in (a), (b) and (c) and the usefulness of the  concepts of market efficiency, portfolio theory and the CAPM.
o    References and bibliography; the Harvard style of referencing should be    followed
o    Appendix – data on this may include extracts of the relevant financial statements/information of the chosen listed company.(AT&T Inc)