The City State of Newdovia, nestled in the Harz Mountains is famous for its beautiful chocolate box buildings and even more famous for its delicious chocolates and cakes. At the latter part of 2019 a stock exchange was established to raise capital and bolster the city’s ‘booming’ economyl.
Currently only 6 companies are listed but it is envisaged this will increase over time. All share data is freely available on the stock market’s website (Moodle) but there is currently no index data provided.
There is also a government-sponsored bond available which offers an annual yield of 1%.
You are required to provide a short business style report to a group of investors in which you detail your analysis of the data provided and make recommendations as to how they should invest. Your results should be presented neatly, with full explanation as to how you arrived at your conclusions.
You will need to determine an index from the weighted average (by market capitalisation) of the returns of individual shares.
Note: Any figures included in your report should be of a standard suitable for use in a business presentation. Additionally, you should ensure your report is legible and well presented. It should not be necessary for your report to be more than 6 pages in length (excluding any appendices). The mark scheme below includes marks for presentation/professionalism.
Your report should include:
• An abstract (one paragraph) • A short introduction • The main body detailing your analysis • A section summarising your analysis and making recommendations