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Group Assignment FIN552

The document provides instructions for a group assignment to analyze the effect of the UK's COVID-19 lockdown on financial institutions. Students are asked to: 1) Select a sample of banks to study; 2) Collect share price data for the selected banks over an appropriate time window surrounding the lockdown announcement; 3) Calculate the banks' returns, expected returns, abnormal returns, and cumulative abnormal returns; 4) Present the results in a 2,500-word maximum executive summary report that clearly explains the findings in writing and graphs. The report must follow formal research standards and demonstrate critical analysis.

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97 views2 pages

Group Assignment FIN552

The document provides instructions for a group assignment to analyze the effect of the UK's COVID-19 lockdown on financial institutions. Students are asked to: 1) Select a sample of banks to study; 2) Collect share price data for the selected banks over an appropriate time window surrounding the lockdown announcement; 3) Calculate the banks' returns, expected returns, abnormal returns, and cumulative abnormal returns; 4) Present the results in a 2,500-word maximum executive summary report that clearly explains the findings in writing and graphs. The report must follow formal research standards and demonstrate critical analysis.

Uploaded by

aizad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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FIN552 – INVESTMENT & PORTFOLIO ANALYSIS

GROUP ASSIGNMENT (30%)

Did the UK COVID-19 Lockdown Affect Financial Institutions?

You work for an investment bank, and it has been assigned you the task to study the effect
of the Covid-19 lockdown in United Kingdom on financial institutions. Specifically, you
want to investigate whether the lockdown announcement has affected financial
institutions’ abnormal returns. To this aim you apply an event study methodology. Your
top management has prepared a list of tasks:

1. Decide a sample of suitable banks that you think might explain the effect of
lockdown on financial institutions.
2. Download share price data for the selected banks but pay attention to choose a
proper time window. You do not want to be neither too far away from the date the
event happened nor to close.
3. Calculate banks’ return.
4. Calculate the expected returns.
5. Calculate the abnormal returns.
6. Calculate the cumulative abnormal returns over different time windows.
7. Explain clearly what you find both written and graphical. Your aim here is to
present a report on the results you find to your top management. So, writing style,
clarity in the explanation matters for final success.

The report should be presented in executive summary format; hence the layout should be
top notch. Number of words must be; 2,500 maximum.

Guideline:

1. Please find:
• Monthly share price
• Monthly open share price
• Monthly high share price
• Monthly low share price
• Volume of the stocks
2. Formula:

Abnormal Cumulative abnormal


Bank’s return Expected return
return return

(
𝑆ℎ𝑎𝑟𝑒 𝑃𝑟𝑖𝑐𝑒1
)−1
𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝑜𝑝𝑒𝑛𝑖𝑛𝑔 𝑠ℎ𝑎𝑟𝑒 𝑝𝑟𝑖𝑐𝑒 − Total return – cumulative abnormal
𝑆ℎ𝑎𝑟𝑒 𝑃𝑟𝑖𝑐𝑒0 𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝑠ℎ𝑎𝑟𝑒 𝑝𝑟𝑖𝑐𝑒 Expected returns of the 1st month
( )
𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝑠ℎ𝑎𝑟𝑒 𝑝𝑟𝑖𝑐𝑒
return + abnormal returns of
the following month
Instructions:
Format:
Project & Answer format

Font Size:
12 point font; Times New Roman, Double- Space;

• Your assignment should exhibit formal research skills from the textbook,
external references, and journals or published papers.
• The work must be able to demonstrate critical analysis, application of both
theory and practical issues to the examples selected.
• Assignment must be check for plagiarism via Turnitin. Please provide the result
of the Turnitin at appendix.
• You may include relevant data/information in presenting the research. ∙ All
references must have proper citation.
• Assignments will be subjected to FAIL for high plagiarism.
• Late submission will be accepted with the rules of deduction of 5% from the
total marks. (Additional 1 week).
• After the additional week, if the students fail to SUBMIT, the result
automatically will be NIL.
• Marking: Marks are allocated base on your answer, with a portion awarded,
for how well you followed the instructions of the project assignment.

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