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Words: | Submitted: Tue Jun 20 2006
... was that it should have adequate liquidity. Each stock in our model portfolio has an average daily turnover of over one million shares. This is to ensure the investor has an easy exit option. 3. For our analysis, the price of each stock was adjusted for dividends and splits. 4. The market index is the Straits Times Index (STI) as it is the index of the Singapore Stock Exchange 5. The expected market return is the Compounded Annual Growth Rate (CAGR) of Straits Times Index over the past 3 years. This is about 12%. 6. The risk free return is the yield of the 1-year Treasury Bill of the Government of Singapore. Currently, this is around 3%. 7. The securities, which we chose as a part of our model portfolio, are given below. a) Creative Technologies b) United Overseas Bank c) NOL Shipping d) China Oil e) Capitaland f) Singapore Shipping Corportation. g) OCBC Bank h) Keppel Corporation. i) MobileOne j) ...
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