Calculate an efficient frontier with the above asset classes

Reference no: EM131969890

Family Supermarket Chain: A Case Study on Family Foundation Asset Allocation

Family Supermarket Chain (FSC) is a multi-billion dollar family owned supermarket chain headquartered in New England with 100 large supermarket stores located along the mid-Atlantic and New England states. The founder of the firm passed away in early 2007 leaving the management of the multi-billion-dollar family business to his very capable and dedicated son and grandchildren.

Part I -

Develop asset class assumptions for each of the asset classes above. Risk, return and correlation. Support your methodology. (See long term monthly asset class performance in excel). Your inputs are to be forward looking in nature. If you wish to use historical data to calculate input data, comment on any adjustments you have made for your analysis.

Calculate an efficient frontier with the above asset classes. Ranging from the least risky portfolio to the riskiest portfolio. Calculate expected rate of return and standard deviation for various portfolios along the efficient frontier.

Part II -

Submit three portfolios to the attorney based on his concerns for liquidity and risk as he defined it. In your analysis, in addition to calculating the asset class allocations, the portfolio's expected return, expected risk, please calculate the probability of losing money, calculate the probability of losing more than 5%, and calculate the probability of not making more than 5% over a one-year time period for each suggested portfolio. Also, comment on how that allocation might change over time and market conditions.

Part III -

Assuming the portfolio was conservatively constructed as of December 31, 2007, how would your recommendation change as of December 31, 2008 given the market declines and assuming industry asset allocation averages allocations remained the same. If you are recommending a change, comment how you would implement that change - immediately or over time?

Index	2008
S&P 500	(37.00)
MSCI EAFE	(43.38)
MSCI Emerging	(53.33)
Aggregate Index	5.24
90 Till Bills	2.10

Further guidelines on the construction and analysis of the portfolios will be provided. All data should be maintained on Excel spreadsheets.

Attachment:- Case Study.rar

Reference no: EM131969890

Questions Cloud

Relationship in a long-term skilled nursing facility : Define shifters that may affect the supply and demand relationship in a long-term skilled nursing facility.

What are some decisions leaders must make : What are some differences between leadership and management? How do these differences affect an organization?

Provide the physical examination findings summary : Provide the physical examination findings summary with planned interventions for the client. Include any community services in the interventions.

How important is privacy to you personally : How important is privacy to you personally? Describe a situation, work-related or otherwise, in which you felt your privacy was threatened.

Calculate an efficient frontier with the above asset classes : Family Supermarket Chain: A Case Study on Family Foundation Asset Allocation. Calculate an efficient frontier with the above asset classes

Demand and marginal revenue curves : Under the two-part tariff, users would be charged a monthly "access charge" plus an hourly rental rate.

What does the concept of company loyalty mean to you : What does the concept of company loyalty mean to you? Does it still make sense today?

Create a relational database in microsoft access : BUS5BID - Management and Marketing Business Information Systems Design - Create a user manual for your Choice appointments Information System

How to develop relationships with your stakeholders : Post a 260- to 350-word response to the following: How do you create and develop relationships with your stakeholders?

User Account

All Pages