BBA 5 (A)

Group # 001
Asim Ali
Muhammad Nauman Rashid
Syed Muhammad Hilal

Submitted to
Mam Humaira Kousar

FA09-BBA-112
FA09-BBA-061
FA09-BBA-090

Allied Bank
Company Profile
Par Value
D (2007)
D (2008)
D (2009)
D (2010)

10
50%
15%
50%
50%

Date

Stock

3/1/2007
31/01/07
28/02/07
30/03/07
30/04/07
31/05/07
29/06/07
31/07/07
31/08/07
28/09/07
31/10/07
30/11/07
31/12/07
31/01/08
29/02/08
31/03/08
30/04/08
30/05/08
30/06/08
31/07/08
29/08/08
30/09/08
31/10/08
28/11/08
31/12/08
30/01/09
27/02/09
31/03/09
30/04/09
29/05/09
30/06/09
31/07/09
31/08/09

93.7
100.7
112.5
93.55
111
122.5
138.95
125.65
113.95
114
127.9
128
130.15
128.75
153.6
120.5
117.99
84
85.27
73.5
58.31
57.88
57.88
57.88
31.32
24.19
34.27
38.74
42.64
40.54
37.6
42.96
44.95

Number of Shares

Dividend
5
5
5
5
5
5
5
5
5
5
5
5
5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
5
5
5
5
5
5
5
5

Ry
No Value
0.13
0.17
-0.12
0.24
0.15
0.18
-0.06
-0.05
0.04
0.17
0.04
0.06
0
0.2
-0.21
-0.01
-0.28
0.03
-0.12
-0.19
0.02
0.03
0.03
-0.43
-0.07
0.62
0.28
0.23
0.07
0.05
0.28
0.16

538.637 Million

KSE 100

Rx

10066.32 No Value
11272.33
0.12
11179.97
-0.01
11271.59
0.01
12369.7
0.1
12961.26
0.05
12289.03
-0.05
13738.87
0.12
12214.26
-0.11
13351.79
0.09
14319.42
0.07
13998.52
-0.02
14075.83
0.01
14017.01
0
14934.3
0.07
15125.29
0.01
15122.47
0
12130.51
-0.2
12289.03
0.01
10583.58
-0.14
9208.26
-0.13
9179.68
0
9182.88
0
9187.1
0
5865.01
-0.36
5377.42
-0.08
5727.46
0.07
6860.22
0.2
7202.1
0.05
7276.61
0.01
7162.18
-0.02
7720.93
0.08
8675.67
0.12

30/09/09
30/10/09
26/11/09
31/12/09
29/01/10
26/02/10
31/03/10
30/04/10
31/05/10
30/06/10
30/07/10
31/08/10
30/09/10
29/10/10
30/11/10
31/12/10

47.11
58.31
63.84
58.73
61.63
64.15
60.01
63.92
56.02
56.95
59.33
51.09
51.48
55.36
61.52
70.15

5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5

0.16
0.34
0.18
0
0.13
0.12
0.01
0.15
-0.05
0.11
0.13
-0.05
0.11
0.17
0.2
0.22

9349.68
9159.18
9206.21
9386.92
9614.19
9657.79
10178.43
10428.12
9326.42
9721.91
10519.02
9813.05
10013.31
10598.4
11234.76
12022.46

Average Return
Standard Variation
Cooficient of Variation

0.07
#MACRO?
#MACRO?

1.29

Beta Cooficient

PORTFOLIO DATA
WEIGHTAGE OF A
WEIGHTAGE OF B
WEIGHTAGE OF C

0.08
-0.02
0.01
0.02
0.02
0
0.05
0.02
-0.11
0.04
0.08
-0.07
0.02
0.06
0.06
0.07

CORRELATION
25%
30%
45%

A,B
A,C
B,C

0.4
0.2
0.41

PORTFOLIO BETA
PortFolio Return
Portfolio Standard Deviation
Portfolio Cofficient of Variation
Portfolio Beta

0.06
#MACRO?
#MACRO?

0.85

INTERPRETATIONS

ALLIED BANK
The beta of Allied Bank is 1.28 which is greater than 1 which means that the stocks are Aggressive in nature and that
if there is a decline in the market returns by 1% then it is expexted that the stock's returns would decline by 1.28% an
Stocks of Allied Bank would increase by 1.28% and the Average Return of the compny is about 7.422% in the last fo

DAWOOD HERCULES CHEMICALS

The beta of Dawood Hercules Chemicals is less then 1 yet the difference is very minimal since the beta is almost equa
features of a Defensive beta yet the more appropriate interpretation would be that the stocks are cyclical in nature a
The beta is 0.97 whcih means that if the return of the market return increases or decreases by 1% then the stocks wou

NESTLE PAKISTAN
The beta of Nestle Pakistan is 0.51 and this beta is Defensive which means that the stocks are less velnerable to chan
would be preferable for risk averse invetors and the beta states that if there is 1% increase in the market then the stoc
of just 0.51% or vice versa and such stocks carry less risk and provide less return as the average return of the last fo

PORTFOLIO INTERPRETATIONS

The porfolio has a beta equal to 0.84 which means that it falls in the category of a Defensive Portfolio which decline
and the stocks are now less riskier then individually, so for an investor the Beta coffecient of the Portfolio is a more
the market return increases or decreases by 1 % our investor's Portfolio's return would experience a change of 0.84%

Dawood Hercules Chemicals

Company Profile
Par Value
D (2007)
D (2008)
D (2009)
D (2010)

10
50%
20%
50%
350%

Date

Stock

3/1/2007
31/01/07
28/02/07
30/03/07
30/04/07
31/05/07
29/06/07
31/07/07
31/08/07
28/09/07
31/10/07
30/11/07
31/12/07
31/01/08
29/02/08
31/03/08
30/04/08
30/05/08
30/06/08
31/07/08
29/08/08
30/09/08
31/10/08
28/11/08
31/12/08
30/01/09
27/02/09
31/03/09
30/04/09
29/05/09
30/06/09
31/07/09
31/08/09

295
288.4
277.1
257
267
274
278.9
278
237
266
300
329.17
393.8
407.65
350
348.8
470
354.9
389.5
277
231.89
231.89
231.89
231.89
220.3
109.24
116.7
140.36
149.24
147.37
128.57
125.56
122.75

Number of Shares

Dividend
5
5
5
5
5
5
5
5
5
5
5
5
5
2
2
2
2
2
2
2
2
2
2
2
2
5
5
5
5
5
5
5
5

Ry
No Value
-0.01
-0.02
-0.05
0.06
0.04
0.04
0.01
-0.13
0.14
0.15
0.11
0.21
0.04
-0.14
0
0.35
-0.24
0.1
-0.28
-0.16
0.01
0.01
0.01
-0.04
-0.48
0.11
0.25
0.1
0.02
-0.09
0.02
0.02

30/09/09
30/10/09
26/11/09
31/12/09
29/01/10
26/02/10
31/03/10
30/04/10
31/05/10
30/06/10
30/07/10
31/08/10
30/09/10
29/10/10
30/11/10
31/12/10

173.24
168.1
171.12
179.81
179.68
209.82
237.47
201.37
154.2
175.45
183.58
162.9
165.69
168.98
177.45
198.36

5
5
5
5
35
35
35
35
35
35
35
35
35
35
35
35

0.45
0
0.05
0.08
0.19
0.36
0.3
0
-0.06
0.36
0.25
0.08
0.23
0.23
0.26
0.32

Average Return
Standard Deviation
Cooficient of Vatiation
Beta Cooficient

ssive in nature and that the stocks of Allied Bank are more sensitive towards the changes in the market and
ld decline by 1.28% and the same is expected that if the market return increases by 1% then the
t 7.422% in the last four years.

the beta is almost equall to one which means that stocks of Dawood Hercules Chemicals have some
are cyclical in nature and respond to the changes in the market index in almost an equall proportion.
1% then the stocks would experience a decline of about 0.97% or vice versa.

less velnerable to changes in the market and categorized as Defensive Stocks. Such type of stocks
he market then the stocks of Nestle Pakistan would be less effected and would or may show an increment of
ge return of the last four years is about 5.20%.

Portfolio which declined the overall systematic risk of Allied Bank and Dawood Hercules Chemicals
he Portfolio is a more suiteable investment opportunity. Also the portfolio beta shows that in case
ence a change of 0.84%

icals

Nestle Pakistan
Company Profile
82.866 Million

KSE 100

Rx

10066.32 No Value
11272.33
0.12
11179.97
-0.01
11271.59
0.01
12369.7
0.1
12961.26
0.05
12289.03
-0.05
13738.87
0.12
12214.26
-0.11
13351.79
0.09
14319.42
0.07
13998.52
-0.02
14075.83
0.01
14017.01
0
14934.3
0.07
15125.29
0.01
15122.47
0
12130.51
-0.2
12289.03
0.01
10583.58
-0.14
9208.26
-0.13
9179.68
0
9182.88
0
9187.1
0
5865.01
-0.36
5377.42
-0.08
5727.46
0.07
6860.22
0.2
7202.1
0.05
7276.61
0.01
7162.18
-0.02
7720.93
0.08
8675.67
0.12

Par Value
D (2007)
D (2008)
D (2009)
D (2010)

10
100%
75%
600%
750%

Date

Stock

3/1/2007
31/01/07
28/02/07
30/03/07
30/04/07
31/05/07
29/06/07
31/07/07
31/08/07
28/09/07
31/10/07
30/11/07
31/12/07
31/01/08
29/02/08
31/03/08
30/04/08
30/05/08
30/06/08
31/07/08
29/08/08
30/09/08
31/10/08
28/11/08
31/12/08
30/01/09
27/02/09
31/03/09
30/04/09
29/05/09
30/06/09
31/07/09
31/08/09

1050
1323
1460
1680
1650
1499
1545
1510
1490
1500
1530
1835
1800
1690
1600
1590
1500
1282.51
1640
1464.41
1350
1350
1342.5
1333.5
1333.5
1086.16
870
1175.9
1000
950.25
1091.98
1100
1097.8

Dividend
10
10
10
10
10
10
10
10
10
10
10
10
10
7.5
7.5
7.5
7.5
7.5
7.5
7.5
7.5
7.5
7.5
7.5
7.5
60
60
60
60
60
60
60
60

9349.68
9159.18
9206.21
9386.92
9614.19
9657.79
10178.43
10428.12
9326.42
9721.91
10519.02
9813.05
10013.31
10598.4
11234.76
12022.46

0.08
-0.02
0.01
0.02
0.02
0
0.05
0.02
-0.11
0.04
0.08
-0.07
0.02
0.06
0.06
0.07
0.07
#MACRO?
#MACRO?

0.97

30/09/09
30/10/09
26/11/09
31/12/09
29/01/10
26/02/10
31/03/10
30/04/10
31/05/10
30/06/10
30/07/10
31/08/10
30/09/10
29/10/10
30/11/10
31/12/10
Average Return
Standard Deviation
Cooficient of Variation
Beta Cooficient

1199.97
1200.04
1200.01
1245.96
1201.1
1248
1280
1600.79
1486.01
1685
1781.14
1799.57
1900.19
1973.48
2050.01
2374.86

60
60
60
60
75
75
75
75
75
75
75
75
75
75
75
75

crement of

Nestle Pakistan

pany Profile
Number of Shares

Ry
No Value
0.27
0.11
0.16
-0.01
-0.09
0.04
-0.02
-0.01
0.01
0.03
0.21
-0.01
-0.06
-0.05
0
-0.05
-0.14
0.28
-0.1
-0.07
0.01
0
0
0.01
-0.14
-0.14
0.42
-0.1
0.01
0.21
0.06
0.05

45.350 Million

KSE 100

Rx

10066.32 No Value
11272.33
0.12
11179.97
-0.01
11271.59
0.01
12369.7
0.1
12961.26
0.05
12289.03
-0.05
13738.87
0.12
12214.26
-0.11
13351.79
0.09
14319.42
0.07
13998.52
-0.02
14075.83
0.01
14017.01
0
14934.3
0.07
15125.29
0.01
15122.47
0
12130.51
-0.2
12289.03
0.01
10583.58
-0.14
9208.26
-0.13
9179.68
0
9182.88
0
9187.1
0
5865.01
-0.36
5377.42
-0.08
5727.46
0.07
6860.22
0.2
7202.1
0.05
7276.61
0.01
7162.18
-0.02
7720.93
0.08
8675.67
0.12

0.15
0.05
0.05
0.09
0.02
0.1
0.09
0.31
-0.02
0.18
0.1
0.05
0.1
0.08
0.08
0.2

9349.68
9159.18
9206.21
9386.92
9614.19
9657.79
10178.43
10428.12
9326.42
9721.91
10519.02
9813.05
10013.31
10598.4
11234.76
12022.46

0.08
-0.02
0.01
0.02
0.02
0
0.05
0.02
-0.11
0.04
0.08
-0.07
0.02
0.06
0.06
0.07
0.05
#MACRO?
#MACRO?

0.52

Nestle Pakistan
Shares
Par Value
D (2007)
D (2008)
D (2009)
D (2010)

Date
3/1/2007
31/01/07
28/02/07
30/03/07
30/04/07
31/05/07
29/06/07
31/07/07
31/08/07
28/09/07
31/10/07
30/11/07
31/12/07
31/01/08
29/02/08
31/03/08
30/04/08
30/05/08
30/06/08
31/07/08
29/08/08
30/09/08
31/10/08
28/11/08
31/12/08
30/01/09
27/02/09
31/03/09
30/04/09
29/05/09
30/06/09
31/07/09
31/08/09
30/09/09

45.350 million
10
100%
75%
600%
750%

Stock
1050
1323
1460
1680
1650
1499
1545
1510
1490
1500
1530
1835
1800
1690
1600
1590
1500
1282.51
1640
1464.41
1350
1350
1342.5
1333.5
1333.5
1086.16
870
1175.9
1000
950.25
1091.98
1100
1097.8
1199.97

Dividend
R(y)
10
No Value
10
0.27
10
0.11
10
0.16
10
-0.01
10
-0.09
10
0.04
10
-0.02
10
-0.01
10
0.01
10
0.03
10
0.21
10
-0.01
7.5
-0.06
7.5
-0.05
7.5
0
7.5
-0.05
7.5
-0.14
7.5
0.28
7.5
-0.1
7.5
-0.07
7.5
0.01
7.5
0
7.5
0
7.5
0.01
60
-0.14
60
-0.14
60
0.42
60
-0.1
60
0.01
60
0.21
60
0.06
60
0.05
60
0.15

XY
0
0.03
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0.03
0
0.01
0.01
0
0
0
0
0.01
-0.01
0.08
0
0
0
0
0.01
0.01

KSE Index
R(x)
10040.5 No Value
11272.33
0.12
11179.97
-0.01
11271.59
0.01
12369.7
0.1
12961.26
0.05
12289.03
-0.05
13738.87
0.12
12214.26
-0.11
13351.79
0.09
14319.42
0.07
13998.52
-0.02
14075.83
0.01
14017.01
0
14934.3
0.07
15125.29
0.01
15122.47
0
12130.51
-0.2
12289.03
0.01
10583.58
-0.14
9208.26
-0.13
9179.68
0
9182.88
0
9187.1
0
5865.01
-0.36
5377.42
-0.08
5727.46
0.07
6860.22
0.2
7202.1
0.05
7276.61
0.01
7162.18
-0.02
7720.93
0.08
8675.67
0.12
9349.68
0.08

30/10/09
26/11/09
31/12/09
29/01/10
26/02/10
31/03/10
30/04/10
31/05/10
30/06/10
30/07/10
31/08/10
30/09/10
29/10/10
30/11/10
31/12/10

1200.04
1200.01
1245.96
1201.1
1248
1280
1600.79
1486.01
1685
1781.14
1799.57
1900.19
1973.48
2050.01
2374.86

60
60
60
75
75
75
75
75
75
75
75
75
75
75
75

0.05
0.05
0.09
0.02
0.1
0.09
0.31
-0.02
0.18
0.1
0.05
0.1
0.08
0.08
0.2
Y

XY
2.5

Beta Cooficient

0
0
0
0
0
0
0.01
0
0.01
0.01
0
0
0
0
0.01

0.52

9159.18
9206.21
9386.92
9614.19
9657.79
10178.43
10428.12
9326.42
9721.91
10519.02
9813.05
10013.31
10598.4
11234.76
12022.46

-0.02
0.01
0.02
0.02
0
0.05
0.02
-0.11
0.04
0.08
-0.07
0.02
0.06
0.06
0.07
X

0.23

0.4

X^2
0
0.02
0
0
0.01
0
0
0.01
0.01
0.01
0.01
0
0
0
0
0
0
0.04
0
0.02
0.02
0
0
0
0.13
0.01
0
0.04
0
0
0
0.01
0.02
0.01

0
0
0
0
0
0
0
0.01
0
0.01
0
0
0
0
0
X^2
0.4