You have a hypothetical £100,000 to invest in shares quoted on the London Stock Exchange. You are to construct an investment portfolio of 10 companies.

The companies can be any 10 listed on the London Stock Exchange (including the Alternative Investment Market). The companies may be non-UK but must have London as the primary listing, ie not Google, Apple, SONY etc. They should not operate in the following sectors: financial services (including banks and insurance), investment or real estate.

The detailed components of your assignment are as follows:

1) Produce a spreadsheet showing: the investments you have chosen; the closing share price on Thursday 10th July; the number of shares you have acquired; the beta of each company; and the value of your investment. Your spreadsheet should show the weighted average beta of your portfolio, accurately calculated. (20 marks)

2) Explain your reasons for choosing each investment. This should include: a brief explanation of what the company does and a discussion of why you think its share price will perform well in the short to medium term. Your work should be supported by commentary and analysis by industry professionals in financial institutions and the financial press. You are not expected to carry out a financial analysis of the company. (c. 1,500 words) (60 marks)

3) Many investment managers invest by buying shares to reflect the FTSE 100 index. Explain how the FTSE 100 index is calculated and how this behaviour by managers affects the market, particularly for smaller companies’’ shares (c.500 words) (20 marks)