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Portfolio Management
Mohammed ALqurashi 200700610Abdulah AL Tewijiri 200600055Ishmeal AL abas 200901599
12/19/2012
University
Portfolio Management 2012
1. Technical analysis is simple and straightforward, with tools available to everyone from the
seasoned hedge fund manager, to the novice retail trader. In addition, technical tools are
easier to interpret than fundamental indicators, the understanding of which usually requires a
period of diligent study. Finally, since technical analysis focuses on the price action
exclusively, the technical trader has only one needle in his compass: the price, on which any
calculation about profits or losses must be based. On the other hand, the fundamental analysis
one of the disadvantages of fundamental analysis is the need to adapt to each company.
Methods of fundamental analysis may vary depending on the industry and the unique factors
of a particular company.
2. In Excel
3. Find the breadth of the market for the last 12 months. For this, you have to use data
from other sources, if necessary. Comment on that.
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Portfolio Management 2012
We used yahoo finance in order to get Ford’s 12 months data for stock price. As the
graph shows the recovery and momentum that the ford’s stock movement shows was between
Jan 12 to May 12 and its start to recover in the end of 2012.
4. Find the 100-day moving average for your firm’s stock price and the index. You need daily
data for your firm and the index. Comment on that.
The moving average between Ford Company and S&P 500 shows positive correlation
relationship, the movements of S&P 500 index reflect the performance of Ford company stack
price. So we will notice it 2008 and 2009 during the financial crisis that the index sharply decline
as well as Ford stock price.
5. using your stock price data show the major trend, intermediate trend and short-run
movements. Do the same for the index. Give comments on this.
Major Trend: during the 2007 to 2009 the whole economy went to a major rescission the data
shows the Index price movements were in 2008 and 2009 in fluctuation zone, and that’s because
during the struggling of the global market during these two years.
Intermediate Trends: Ford Company’s stock price and return as the data shows from 2006 and
2010 the return of ford was suffering because the financial crisis.
Short- term Trends: The 12 months data for Ford company stock price shows stability in the
movement of the stock. During 2011 the stock tends to be more healthy and stable than be for.
But during 2012 the stock price decline slightly because other events such as the Arabian spring
that affect the oil price movements.
6. Find the relative strength for your firm in the last 60 months. What is your comment?
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Portfolio Management 2012
Relative strength calculates which investments are the strongest performers, compared to the
overall market, and recommends those investments for purchase. Relative strength is a "buy
high, sell higher" strategy that assumes a stock whose price has been rising will continue its
upward trajectory. (investopedia.com)
Ford Company
As shows above that ford’s stock price movement reach it maximum investment in 2011. If we
look to the period between 2008 and 2010 we can observe the weakness in the performance of
ford stock price movements. The relative strength reaches it maximum in 2011 and the analysts
expect to reach again in 2014.
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Portfolio Management 2012
7. Based on all the previous findings, make your final comment? This is the time to buy or
sell?
The global economy passes in recovery period with slight struggles. The U.s economy witness a
good recovery period right now after avoiding the economy cliff. The investors decision should
based on the past tends of the index movements, the trends of Ford Co shows a good movements
with much less fluctuations in the stock movements. Our advice to the investor to buy and
regardless of the slight drop but in the future our data shows ford’s stock is in good shape.
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