Conduct technical analysis and fundamental analysis on the assigned futures contracts and write a research report.

Instructions Conduct technical analysis and fundamental analysis on the assigned futures contracts and write a research report. • Include all material as stated in the sample report. • Conclude your work by giving recommendations i.e. to short or long these contracts. • Use diagrams, charts, facts and figures to support your conclusion. Also include following: • An introduction to derivative contracts such as forward, futures, etc. • Briefly discuss the history of such contracts and state their purpose(s). • Explain in detail the existence of various derivative contracts in Pakistan e.g. futures on commodities, options on index, currency forwards, swaps. • Mention the role of various entities regarding the derivative contracts such as SBP and various dealers. • Explain the mechanism behind the various derivative contracts such as who can enter, how to enter, counterparties involved, margin requirements, account settlement, underlying assets, etc. (in the context of Pakistan). • Explain in the detail the mechanism behind Credit Default Swap (CDS) and its role in the recent global financial crisis; including Pakistan. Note* Contract in BRENT100-JA19 Consider the portfolios below: • Portfolio 1: PSX 100 index and 3-month T-bill issued by govt. of Pakistan. • Portfolio 2: PSX 100 index and PMEX commodity index. • Portfolio 3: 3-month T-bill issued by govt. of Pakistan and PMEX commodity index. • Portfolio 4: PSX 100 index, PMEX commodity index and 3-month T-bill issued by govt. of Pakistan. • Portfolio 5: PSX 100 index and Real Estate Index (Karachi, Plots). • Portfolio 6: PMEX commodity index and Real Estate Index (Karachi, Plots). • Portfolio 7: 3-month T-Bill issued by govt. of Pakistan and Real Estate Index (Karachi, Plots). • Use the data from the year 2011-2017 to find out the risk and return on these portfolios. • Use monthly average returns. • Calculate Sharpe ratio, M-squared, Jensen’s Alpha and Treynor measure to compare the portfolios’ performance. • Recommendation i.e. which portfolio is the best to invest. • Conclude and highlight the optimal portfolio (in the context of portfolio theories). • Data Source: [login to view URL], PSX, SBP, YAHOO FINANCE, OPENDOORS, PMEX, IMF, WORLD BANK and TRADING ECONOMICS. • Show all your workings on Microsoft Excel, Microsoft Word. • Construct risk and return graphs on Microsoft Excel for each portfolio