Risk and Returns Analysis of Stocks From Financial Times Stock Exchange 100 Index
Carry out risk and return analysis of 20 stocks taken at random from the FTSE (Financial Times Stock Exchange) 100.
Construct a risk and return profile of each of the twenty stocks over the last five years based on monthly observations. Evaluate your results and recommend stocks for a prospective investor. Construct a high risk and a low risk by allocating equal weights to each stock you have identified in the previous question. Provide a reflective summary of your understanding of portfolio management theory and practice.