Portfolio Management Workshop
The first Portfolio Management workshop in India for MBA Students
Dr. Vadapalli Satish
Lead Consultant Neonatologist, Apollo Hospitals
MBBS, MD (Paeds), Fellowship in Neonatology [RCPCH, UK], MBA (Finance),
Certified Equity Research Analyst,
Registered Mutual Fund Advisor (AMFI),
Visiting Faculty, MBA Finance, Samata College,
Author: "Bestseller"—first textbook in India on Monetary Management Textbook for Finance and economics Student .
We will conduct a financial workshop focused on applying the Markowitz Portfolio Theory and the Capital Asset Pricing Model (CAPM). The workshop will consist of several steps to comprehensively analyze a portfolio of 100 stocks traded on the National Stock Exchange (NSE) over the past decade.
The time frame of study- is 2013–2023.
Total stocks included: 100 from NSE
Excel skills: Vlookup, Index, Match, and MMULT
Stepwise Learning Module
Step 1: Import historical stock price data from NSE for the selected 100 stocks on a weekly basis.
Step 2: Calculate the weekly returns for each of these stocks.
Step 3: Extending our analysis over the past 10 years to gather sufficient data for our portfolio assessment.
Step 4: Calculate the unsystematic risk for all 100 stocks.
Step 5: Calculate the risk-return trade-off.
Step 6: Visualizing the results through graphical representations
Step 7: Create an optimal portfolio consisting of 16 carefully selected stocks.
Step 8: Calculate the variance and covariances of these 16 stocks.
Step 9: Comparing the risk-reward ratio
Step 10: Compare Optimal vs. all other portfolio
Step 11: Draw a capital market line (CML).
Step 12: Draw an Efficient Frontier line (EFL).
SHARPE RATIO & PORTIFOLIO
EFFICIENT FRONTIER LINE
Further, we will utilize (MMULT) functional tools to calculate portfolio risk and explore various portfolio scenarios, including:
1. Optimal Weighted Portfolio
2. 2% Optimal Weighted Portfolio
3. Lowest Risk Portfolio
4. Lowest Sharpe Ratio Portfolio
5. Lowest Return Portfolio
6. Equally-weighted portfolio
7. High-Risk Portfolio
8 . High-Return Portfolio
9. Low Sharpe Ratio Portfolio
10. Low-Return Portfolio
11. Low-Risk Portfolio
12. High Beta Weighted Portfolio
13. Low Beta Weighted Portfolio
15. Random Weighted 1
16. Random Weighted 2
17. Random Weighted 3
18. Random Weighted 4
19. Random Weighted 5
This workshop aims to provide a comprehensive understanding of portfolio management strategies and their applications in real-world financial scenarios.
Reviews of the Markowtiz Portfolio workshop held on October 12–13, 2023, at Samata College, Visakhapatnam