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Investment & Portfolio Project

In: Business and Management

Submitted By junaidjavaid99
Words 12484
Pages 50
1. Introduction
This is the final project of the Course Named: Investment & Portfolio Analysis. The purpose of this project is to examine thoroughly if the CAPM holds true in the emerging capital market of Pakistan. Tests are conducted for a period of five years (2005-2009), which is characterized by intense return volatility (covering historically high returns over the examined period).

2.1. Karachi Stock Exchange

* Incorporated on March 10, 1949 * Premier Stock exchange of the country * Started with 5 companies that had a paid up capital of Rs. 37 million. * Trading was done through an open-out-cry system * The first index was the KSE 50 Index * Exchange owned by 200 members * 652 companies listed * 4 indices * Modern Risk Management System a. Var Based Margin b. Pre Trade Margin Verification * KSE is FIX Compliant * Electronic Trading through KATS * Market capitalization*: US $ 26.04 billion * Publicly Listed Company with strategic investor

* Products to include: a. Options b. ETFs c. Tradable Sector Indices d. Debt Market Trading * Broad based investor participation * Cross border listings of companies * Opening up of branches in other cities and in the region

2.2.1. Definition

A stock exchange, share market or bourse is a corporation or mutual organization which provides facilities for stock brokers and trader s, to trade company stocks and other security.
A stock exchange, (formerly a securities exchange) is a corporation or mutual organization which provides "trading" facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and...

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