User Account

All Pages

Construct a diversified portfolio

Assignment Help Finance Basics
Reference no: EM132516448

You have just been appointed as the NEW Portfolio Manager of asset management company, and you are given a responsibility to setup an investment fund amounting to $100 million.

Question: Using the given amount, construct a diversified portfolio of FIVE (5) asset classes, and explain the rationale for picking them, and where possible show indicative annual return on each class of asset.

Notably, compare the return with the prevailing inflation rate of 7%, and ignore the tax implication on your returns.

Reference no: EM132516448

Questions Cloud

Responsible for the security of information : Who is ultimately responsible for the security of information in an organization? What are the disadvantages of using a VPN instead of a leased line?
Importance and purpose of conduct and ethics : Information on the importance and purpose of conduct and ethics. What information might you utilize for ethical hiring within your organization?
How much will the company pay suppliers in the third quarter : Purchases are equal to 55 percent of next quarter's sales. Each month has 30 days, the accounts receivable period is 32 days, and the accounts payable
What approach should be adopted : From an efficiency perspective of Positive Accounting Theory (PAT), what approach should be adopted when managers are approaching retirement?
Construct a diversified portfolio : You have just been appointed as the NEW Portfolio Manager of asset management company, and you are given a responsibility to setup an investment
Playfurn buy the new machine : If the required rate of return 10 per cent per annum, should Playfurn buy the new machine?
Make a report that will be of more value in analyzing : Make a report that will be of more value in analyzing and appraising performance of manager of Department D for October and comment on the operating results?
What annual savings can it realize by plan : If the firm pays 12 percent per year for its resource investment, what annual savings can it realize by this plan?
Prepare and display a numerical summary report : Prepare and display a numerical summary report for each of the two variables including summary measures such as mean, median, range

Reviews

Write a Review

Finance Basics Questions & Answers

  Describe the long-term non deposit funds sources

What long-term non deposit funds sources do banks and some of their closest competitors draw upon today? How do these interest costs differ from those costs.

  Per share dividend indefinitely

CF Biogenetics, Inc. plans to retain and reinvest all of their earnings for the next 12 years. Beginning in year 13, the firm will begin to pay a $25 per share dividend indefinitely. Given CFB is fairly risky the required return is 18%, what should..

  What is the required return on the market

Assume that the risk-free rate is 3.90% and that the market risk premium is 10.00%. What is the required return on the market?

  Required rate of return on okefenokee stock

What is the required rate of return on Okefenokee stock? What is the beta of the company's existing portfolio of assets?

  How would you expect its stock price to react

WeeMart Corporation, a retailer of children's clothes, announces a cut in dividends following a year in which both revenues and earning dropped significantly.

  Which proposal is less expensive

Suppose you are studying two hardware lease proposals. Option 1 costs $ 4000, but requires that the entire amount be paid in advance. Option 2 costs $ 5000 , but the paymenents can be made $1000 now and $1000 per year for the next four years.

  Explain how the internet has made this worse

Determine whether file sharing is necessary to further advantage technology or if it should be stopped because it violates copyright law.

  What will be the firm cost of common equity

If the firm's beta is 1.6, the risk-free rate is 9%, and the average return on the market is 13%, what will be the firm's cost of common equity using the CAPM approach?

  Sum up the present values of the hernandezes assets

Sum up the present values of the Hernandezes' assets, excluding their personal residence, and identify which assets derive from tax-sheltered accounts.

  How an organisation can transition data

Explain how an organisation can transition data into knowledge and give an example

  Do you anticipate any offsetting exchange rate effects

Assume that today's spot rate is used as a forecast of the future spot rate 1 year from now. The New Zealand dollar, Mexican peso, and Singapore dollar.

  What is the firm break-even point in sales dollars

What is the firm's break-even point in sales dollars? If sales should increase by 30 percent, by what percent would earnings before taxes (and net income) increase

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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