FINANCIAL MANAGEMENT

DFN2013

FINANCIAL MANAGEMENT
AFN20103
PROJECT 1 (10%)
OBJECTIVES

The objective of this project:

i.
To develop student understanding on Malaysia Capital Market and
share market trading.
ii.
To help the students to enhance their analytical and creativity skills
in problem solving.
Therefore, students should utilize this opportunity by giving full
commitment in the preparation of the report.

INSTRUCTION

This is a group project consisting FOUR (4) students in each group. You
are required to collect the closing WEEKLY share prices of FOUR (4)
companies from the main market and KLCI (KLSE FTSE BUR MAL) for
THREE (3) year, 2012 - 2014. All information must be obtained from
reliable sources.(YAHOO Finance) Each group must propose their
companies name that to be approved with collection data. (Week2).
Each raw data (4 company share price and KLSE FTSE BUR MAL)
and calculation must be burn in the CD.
The cover page needs to be Light BLUE (Miss Nurhidayah), PINK
(Miss Husna) and Light Purple (Miss Hartini) with font printed is black
in color and must consist of:
Project title (capital letters)
Student name and matrix ID
Program and institution name

DEADLINE

WEEK 10

FINANCIAL MANAGEMENT

DFN2013
METHODOLGY & ANALYSIS

1. Standardize the dates and prices for 4 companies and KLCI. Then numbering data on the first
column.
2. Calculate as follow:
No
1
2
3
4
5
260
261

MONTH
January

DATE
1-Jan-03
2-Jan-03
3-Jan-03
6-Jan-03
7-Jan-03
30-Dec-03
31-Dec-03

Price
2.20
2.19
2.19
2.16
2.18
3.50
3.60
Total :

1ST COMPANY
R
R-E(R)
(0.004545) (0.006645)
0 (0.002100)
(0.013699) (0.015798)
0.009259
0.007160
0.029412
0.027312
0.028571
0.026472
0.545934

E(R) :
Variance :
Std Dev :

0.0021
0.000414
0.020353

Beta () :

1.128058

a) Return (R) =
[Ending / Beginning ] 1

f)

(R-E(R))
0.000044159
0.000004409
0.000249589
0.000051259
0.000745946
0.000700750
0.107705516

2ND COMP
0.000007
0.000002
0.000016
(0.000032)
(0.000175)
(0.000314)
0.003112

3RD COMP
0.000007
0.000002
0.000138
(0.000007)
(0.000461)
0.001425
0.007895

KLCI
0.000148
(0.000002)
0.000153
(0.000025)
0.000148
0.000019
0.014935

Cov :
Cor :

0.000012
0.055511

0.000030
0.097372

0.000057
0.395497

Standard deviation () =

g) Coefficient of variation (CV) = / E(R)

b) Find the E(R) = R
n

h) Covariance
= (RA E(R)A ) (RB- E(R)B)
n-1

c) Calculate R E(R) for each

date.
d) (R E(R))2 then get the
total(SUM).
e) Variance () = (R E(R))2
n-1
3. Find CAPM

i)

Correlation = CovAB
A b

j)

Beta () = CovAKLCI
KLCI

RRR = Rf + (Rm Rf)

Where;
Rf = T-Bill / MGS = 0.032
Rm = Average of KLCI (E(RKLCI))
= , which assume each weighted of companies are equal.
Assets
1ST COMP
2ND COMP
3RD COMP
4TH COMP

Weight (X)
0.25
0.25
0.25
0.25

Beta ()
1.128058
0.165127

X*
0.112806
0.016513

TOTAL

SUM (X*)

FINANCIAL MANAGEMENT

DFN2013

EVALUATION FORM (REPORT)

FINANCIAL MANAGEMENT (DFN2013)
Name of students

Title of the project

1.__________________________________________________
2.__________________________________________________
3.__________________________________________________
4.__________________________________________________
____________________________________________________

Instruction:
Please assign the marks to your management project students on the following
components of his/her management project.
CONTENTS

SUBTOTAL

REMARKS

1. Introduction
(objective & purpose) 1 pg
2. Company Profile 3-5 pg

3. Analysis SWOT 3-5 pg

4. Methodology and Data Analysis (excel)

CD only

______ /90

-raw data 3x (4co+klci)

-formula 15m x(4co+klci)

5. Result / Finding 10-15 pg

(Include graph, table, chart etc.)

6. Conclusions 1 pg

7. Recommendation 1 pg

8. References / Appendix / CD
(Include relevant attachment)

9. Format / Creativity / Language

TOTAL MARKS

______ /10

= ________ / 100