Analysis of the economic conditions and risk

Assignment Help Microeconomics
Reference no: EM132657094 , Length: 2 pages

This individual assignment involves an analysis of general economic conditions or systematic risk, i.e., the risk that affects all industries and companies, in the U.S. macroeconomy. You will be asked to determine in percentage terms an optimal allocation of $1,000,000 among the following three asset classes: U.S. equities, U.S. Treasury bonds, and cash. The goal is to maximize your expected return over the next 12 months. You will be asked to write a 1- to 2-page business brief providing your analysis of the asset classes' prospects and your justification of your allocation among them

1. Conduct any necessary research so that you can make a proper analysis.

2. Write a 1- to 2-page business brief that includes the following sections.
o Opening: Discussion of the general economic conditions in the U.S. macroecomony.
o Analysis: Discussion on analysis of the economic conditions and risk.
o Recommendation: What is your recommendation and justification for, in percentage terms, of an optimal allocation of $1,000,000 among the three asset classes.

The allocation to be 50% equity, 30% US bonds and 20% cash or cash equivalent. Justificatioin to be included to why these securities were selected for investment.

Reference no: EM132657094

Questions Cloud

What would be the expected value of the total return : What would be the expected value of the total return if you have no forecast? What would the expected value be if you have a perfect forecast?
What are the positives and negatives of social identity : State three specific ideas for how you can lessen the negative effects of collars, either within your organization or within teams.
What are the tax consequences of these items to Tucker : During the current year, Tucker had the following personal casualty gains and losses. What are the tax consequences of these items to Tucker
What is the best estimate of fixed maintenance costs : What is the best estimate of FIXED maintenance costs when the hospital expects 2,000 patient-days? Y-Intercept $5,968X-variable (patient days)
Analysis of the economic conditions and risk : Write a 1- to 2-page business brief providing your analysis of the asset classes' prospects and your justification of your allocation among them
Border security and immigration : Describe how border protection philosophy changed as a result of 9/11. Summarize border security issues.
Explain hr best workforce management practices audit : What are the HR Best Workforce Management Practices Audit? Can you provide some examples? Can you provide 2-3 references to support your claim?
What the total overhead assigned to product x would be : What the total overhead assigned to product X5 would be? Pawn Corp has identified two activities in its activity based costing system
Immunity- prosecution for bribery against a high government : Assume you are a lawyer defending someone in a prosecution for bribery against a high government official.

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd