Investment portfolio design

Bc. Mikhail Sukhoruchkin

Master's thesis

Abstract:

This diploma thesis focuses on investment portfolio design. The thesis is split into two sections. The theoretical section goes into the financial market, money market and capital market, securities and market structure, stocks, stock exchange, investment portfolio characteristics (such as profitability, risk and liquidity) and diversification. The practical part consists of 4 industries, each with 3 joint stock entities because of diversification. The final portfolio is created by choosing 4 stocks one from each industry based on economic indicators and multi-criteria decision analysis. The study for selected companies is based on yearly reports. Companies are described in terms of their scope, internal structure, goods, and future plans. On the basis of the financial accounts, a technical analysis is also performed. Profitability, dividends, debtness, and a comparison of a company's index to equity indexes are all part of the technical analysis. A correlation matrix was created based on market prices to determine correlation coefficients among companies. The share of each company in the portfolio was determined using a multi-criteria decision analysis that included diluted earnings per share (EPS), price to earnings ratio to growth (PEG), price to book value ratio (P/B), dividend payout ratio, and free cash flow.

Keywords

Investment, securities, investor, portfolio, analysis, capital market, financial market, shares

Language used: English

Date on which the thesis was submitted / produced: 31. 3. 2022

Thesis defence

• Supervisor: prof. Ing. Mansoor Maitah, Ph.D. Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

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