Assessment of Bachelor Thesis – Academic Consultant
Study programme:International Economic Relations Field of study:International Business
Academic year:2020/2021
Bachelor Thesis Topic:Role of gold in an investment portfolio Author’s name:Michael Petr
Ac. Consultant’s Name:Mgr. Ing. Jakub Jedlinský, Ph.D.
Opponent:Ing. Kareem Issam Abdallah
Criterion Mark
(1–4)
1. Overall objective achievement 1
2. Logical structure 2
3. Using of literature, citations 1
4. Adequacy of methods used 1
5. Depth of analysis 2
6. Self-reliance of author 1
7. Formal requirements: text, graphs, tables 2
8. Language and stylistics 1
Comments and Questions:
The process of the writing of this thesis was difficult and sometimes painful. Having stated this, I must highlight the result is surprisingly good. The thesis’ author has put a lot of effort (including learning to code in Python!) and passion into it. He did accept and integrate virtually all the good advises I gave him while keeping opposing me when he thought (I guess rightfully) that I was wrong.
The first chapter is concerned with macroeconomics which might feel weird considering the
microeconomic topic and goal of the thesis, however, the author explains that the price of gold is subject to macroeconomic indicators. Therefore, it is relevant. The author works nicely with primary data. And his datasets are up to date.
Chapter two examines the question under which circumstances gold improves the performance of an investment portfolio on a theoretical level. It is based on a rather broad literature review.
Chapter three is the practical one. The author builds a prediction model in Python combining several methods and selecting a portfolio of various indices. Also, in order to simulate heterogenous scenarios, he takes data from three historical time periods representing different types of market conditions (different macroeconomic setups). Great job! Even though the author deals with multiple issues while constructing the model-that are not trivial-he is able to assess those in a rigorous way and explain the solution with clarity. The thesis is quite easy to read and understand.
The author uses labels under Figures as text fields. It is very unusual in a university thesis, however, I quite like it. There is no doubt the whole concept of the thesis is original.
The list of figures could include names of the figures. The author combines serif and sans serif (in titles) fonts which is not a good idea. Chapters’ titles should be equipped with numbers.
The text only occupies 35 pages. That is definitely not good but I am willing to turn a blind eye considering the size of the appendix and the value/energy incorporated in the code. Still, more pages could have been devoted to a broader literature review (mainly on methodology), discussion on possible other methods, arguments for choosing this particular one etc.
Authors English is not flawless but still impressive.
I must admit I can’t help to admire the author’s audacity to write a formally unusual thesis, noting its contents are outstanding (with regards to the standard of theses normally being defended at our university). I could criticize various aspects of the thesis but I don’t want to. It was a pleasure reading it.
I wish to Mr. Petr a good sleep before the defence and a I recommend to him to take the preparation for it seriously.
*Questions for the defence:”
Why does indebtedness cause a slowdown of the respective economy?
What would change if the gold share in your portfolios was 50% or 100% instead of 16%?
Conclusion: The Bachelor Thesis is recommended for the defence.
Suggested Grade: 1
Date: 26/05/2021 Mgr. Ing. Jakub Jedlinský, Ph.D.
Academic Consultant
