Portfolio Management

Investment Analysis & Portfolio Management

MFI 6402

Individual Assignment

"If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.   This bold statement made by Warren Buffett will be the key note or the entrance statement to this assignment which is an attempt to search empirical evidence for famous portfolios theory Capital Asset Pricing Model”

Udani Chathurike Edirisinghe – 018

MBA/MPM/MSC. IN MANAGEMENT PROGRAM-2010
UNIVERSITY OF SRI JAYEWARDENEPURA
FACULTY OF GRADUATE STUDIES

Introduction

Sample Selection

The sample for the study to test capital market line was 10 listed companies in the Colombo Stock Exchange. Random sampling approach was followed for sample selection. The sample period is 36 months spanning from January 2008 to December 2010. The Details of the Sample selected are as shown in Table 1 – Sample Details,

Table 1 – Sample Details

|COMPANY NAME                                                           |COMPANY ID                 |MARKET CAP (RS)                         |
|Asian Hotels & Properties Plc                                           |AHPL                       |11,29,07,70,150                         |
|Asian Hotels & Properties Plc                                           |AHUN                       |3,01,70,01,804                         |
|Blue Diamonds Jewellery Worldwide Plc                                   |BLUE                       |21,84,25,604                           |
|Ceylon Beverage Holdings Plc                                           |BREW                       |3,16,25,00,000                         |
|Agalawatte Plantations Plc                                             |AGAL                       |51,25,00,000                           |
|Aviva Ndb Plc ( Formerly Eagle Insurance)                               |CTCE                       |4,06,50,00,000                         |
|Lanka Ceramic Plc... [continues]

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