FINANCE Course Financial Investment

Rumm

MEET OUR TEAM

1

Team: ‘ 1 ’
PRESENT TO YOU…

ĐINH THỊ KIM NGÂN

LÊ CHÍ THIÊN

NGUYỄN THỊ NHUNG

Đinh Văn Quốc


2

T H E P O RT F O L I O O F
C U U LO N G P E T R O &
EXIM BANK
F IN AL RE P O RT

￥

Proposed supervisor: M. Fin. Nguyễn Thanh Hương
Course: Financial Investment
Class: 42K15.3

3

GENERAL ANALY
SIS
World situation

2018

2019

Global

3.7

3.9

America

2.3

2.7

Japan

1.8

1.2

European

2.4

2.2

Germany

2.5

2.3

France

1.8

1.9

China

6.8

6.6

ASIAN – 5

5.3

5.3

(Include: Indonesia,

Malaysia,
Philippines, Thailand,
VietNam)


4

GENERAL ANALY
SIS
Inflation

Country

2018

2019

Global

2.192 %

3.6 %

China

1.52 %

2.1 %

Europe

2.14 %

2.2 %

American

2.2 %

2.6 %

Japan

0.42 %

1%


5

GENERAL ANALY
SIS
Public debt to GDP

Country

2018

2019

Global

225 %

318 %

China

46.96 %

50.10 %

American

74.5 %

55.58 %

Japan

237.647 %

238.225 %


6

GENERAL ANALY
SIS
Political instability

7

GENERAL ANALY
SIS

Year

2018

2019

Growth of GDP (%)

6.81 %

7.08 %

Agriculture, forestry and fishery (%)

2.90 %

3.76%

Industry and construction sector (%)

8.0 %

8.85 %

Service area (%)

7.44 %

7.03 %

The growth of Viet Nam


8

GENERAL ANALYSI
S
Inflation


9

COMPANYANALY
SIS
EXIM BANK & CUULONG CORP


10

CUY LONG CORP

Overview

Development history

Business fields

Company’s position


11

EXIM BANK

Overview

Development history

Business services

Company’s position


RuM’s credit

4. ANALYZING FINANCIAL STATUS

CUY LONG CORP

Indicators

Year 2017

Year 2018

ROA

1.87%

4.69%

ROE

2.75%

6.98%

EPS

295

709. 

12


RuM’s credit

4. ANALYZING FINANCIAL STATUS

CUY LONG CORP

Indicators

Year 2017

Year 2018

Current Ratio

1.87

1.80

Quick Ratio

0.89

1.13

Cash Ratio

0.09

0.04

13


RuM’s credit

4. ANALYZING FINANCIAL STATUS

CUY LONG CORP

Indicators

Year 2017

Year 2018

Total Assets Turnover

1.71

0.78

Account Receivable Turnover

7.35

3.91

Inventory Turnover

0.03

0.09

14


RuM’s credit

4. ANALYZING FINANCIAL STATUS

15

EXIM BANK

Indicators

Year 2017

Year 2018

Net interest income

2,667,818

3,206,895

Operating expenses

2,206,069

2,900904

Operating profit before provision for credit losses

1,622,155

1,550,674

Total assets

149,369,554

152,652,063

117,539,696

118,693,869

Profit before tax

1,017,579

827,128

Net profit after tax

822,830

660,590

Net gain/(loss) from sales of investment securities

62,621

-116,033

 

Deposits from customers
 


RuM’s credit

4. ANALYZING FINANCIAL STATUS

EXIM BANK

Indicators

Year 2017

Year 2018

ROA

0.59%

0.44%

ROE

5.94%

4.53%

EPS

699

537

16


17

BUIDING
PORTFOLIO


18

I. Collecting the datas

1. Collecting the datas of two stocks from 2/1/2018 to 30/8/2019

• Using the websites: to collect the datas of two stocks which named CCL, EIB and that of VNI
NDEX from 2/1/2018 to 30/8/2019.

By

using

formula:

the

following
Rt

: is the daily rate of return of the security (%)

Pt

: is the adjusted price of the stock on t

Pt+1

: is the adjusted price of the stock on t + 1


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We show the result of this part in the attachted excel file:


20

2. The expected return of two stocks and the VNindex

• Apply formula and information of stock and VN index in our stock markets, we can calculate data as follo
w table below

• 
Expected rate of return

CCL

EIB

Vnindex

0.2423 %

0.0892 %

0.0042 %

 

 

 

=> CCL and EIB stocks both have positive expected returns and are larger than VN's expected returns, so
choosing these two stocks in the portfolio will yield future returns for investors. However, the combination of these
two assets is more profitable than the market is not sure


21

3. Standard deviation of two stocks and the VNindex
 

Standard deviation
 
2.851080 %

CCL

 
 
1.949830 %

EIB

 
 

VN index

1.1871868 %

 

=> Standard deviation measure the volatility of an investerment. The higher the , the risker the investerment.
Here, standard deviation of CCL is 2.851080 % and EIB is 1.949830 %, higher than VNI’s standard deviation. That means the risk of
both stocks is much higher than the market.


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4. Covariance and correlation coefficients of CCL and EIB

 The covariance of two stocks is calculated by this formula:
 
 

, :

Rate of return at period t of stock CCL, EIB

E() , E() :

The expected rate of return on stock

N:

Number of time periods

 

 

 The correlation between two stock is calculated by this formula:
 

 

: the covariance between CCL, EIB
: the standard deviation of CCL, EIB
 


23

4. Covariance and correlation coefficients of CCL and EIB

• Cov = 0.000026 %
• Corr = 0.046826907 %
• => Covariance and the correlation coefficient between the two securities are positive, so that the yields of two sec

urities tend to move in the same direction as their average values over the same period, the correlation between tw
o securities less than one indicates that two securities have a linear relationship of the same direction, the same inc
rease or decrease


24

5. The minimum variance frontier and the efficient frontier.
•

a. Minimum variance frontier:

•

In order to solve these issues, we will build optimal portfolios offering the maximum possible expected return for a given level of risk based on Modern portfolio theory of Markowitz. Accordi
ng to all steps below:

•

Step 1: Set up equations of proportion of funds in CCL, EIB. Then, calculate the expected rate of return, variance, standard deviation according to available dat
a
W(CCL)

W(EIB)

бP

E(RP)

б2P

Shape(S)

1

0

0

0.0024232  

 

0.995

0.005

0.029267

0.00241554

0.000857

0.0804458

0.99

0.01

0.029121

0.00240789

0.000848

0.080587719

0.985

0.015

0.028974

0.00240023

0.00084

0.080730146

0.98

0.02

0.028829

0.00239257

0.000831

0.08087307

0.975

0.025

0.028683

0.00238492

0.000823

0.081016477

0.97

0.03

0.028538

0.00237726

0.000814

0.081160357

0.965

0.035

0.028393

0.0023696

0.000806

0.081304694

0.96

0.04

0.028248

0.00236194

0.000798

0.081449476

0.955

0.045

0.028104

0.00235429

0.00079

0.081594688

0.95

0.05

0.027961

0.00234663

0.000782

0.081740313

0.945

0.055

0.027817

0.00233897

0.000774

0.081886337

0.94

0.06

0.027674

0.00233131

0.000766

0.08203274


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5. The minimum variance frontier and the efficient frontier.

• Step2:
•

Using Microsoft Excel to draw the minimum variance frontier

A minimum variance portfolio is a portfolio of securities that combine to minimize the price volatility of the overall portfolio.
In Markowitz portfolio theory, the frontier on a chart representing a portfolio with the least amount of volatility.

MINIMUM VARIANCE