Investment portfolio design

Bc. Alla Kitayskaya

Master's thesis

Abstract:

The diploma thesis is focused on design of the investment portfolio. The thesis is divided into two parts. The theoretical part discribes in details financial market, money market, capital market, securities market structure, stock exchange, stocka and investment portfolio characteristics such as profitability, risk, liquidity. The practical part includes five industries with three joint stock companies in each of them. Resulting portfolio is made by selection one company from each industry on the basis of comparison of eonomic indicators and multi-criteria decision analysis. For chosen companies analysis is made on the basis of annual reports. Companies are presented in terms of scope, internal structure, products and description of the future direction. Futher, a technical analysis is made on the basis of the financial statements. The technical analysis contains profitability, dividend, debtness and a comparison of a company`s index with equity indices. Based on market prices a correlation matrix was made to determine correlation coefficients among stocks. According to the multi-criteria decision analysis which contains diluted earnings per share, price to earnings ratio to growth, price to book value ratio, dividend payout ratio and free cash flow, the share of each stock in the portfolio was made.

Keywords

investment, shares, portfolio, financial market, capital market

Language used: English

Date on which the thesis was submitted / produced: 29. 3. 2019

Thesis defence

• Supervisor: Ing. Karel Malec, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics and Management / Economics and Management