Differences between technical and fundamental analysis

Reference no: EM133122475

Course Description

This module allows students to evaluate the preservation of wealth is as important as the protection of wealth. Either factor will shrink the economic value of accumulated wealth. This module uncovers fundamental principles of investment, which include disciplinary, risk profiling, asset allocation, portfolio management, select the appropriate tools of investment, the various types of investment markets, etc. Thorough calculation of the measurement of risks and returns, the time value of money will be featured in the course work.

Course Objectives:
This course provides insights and experience in financial and investment planning. Course objectives are:
To apply the relationship of risks vs. returns.
To acquire knowledge of various investment markets and products.
To apply Identify the legislation governing investment.
To apply the asset allocation and portfolio management.
To acquire the knowledge of various investment markets and products.
To strategize investment planning to preserve wealth for holistic financial planning.

Assignment 1
As the Head of the Investment Analysis team of AmGlobal Investment Fund, you have to plan your investment. The pandemic is around the globe for almost two years. There are so many investment opportunities available, and some companies are not able to manage their company's financial wellness. Your team is required to analyze the company financial statements thoroughly by doing the following:

Required:
Choose ONE (1) listed company from Bursa Malaysia (the selection of the company must not be repeated among the students, first-come-first-served).

Question 1
According to what you have learned from financial and investment planning, using the latest financial reports of the listed company, compared, analyze, and comment on the company's financial position (the point of comparison should be shown). Critically evaluated and justify the company's financial health and your opinions in improving it, with a short discussion only for each point (TEN (10) points).

Question 2

Download two years (2019 and 2020) stock price of the company, using the data:
Plot the stock price of the companies
Do a descriptive analysis on the stock price
Do a descriptive analysis on the stock return
Do a descriptive analysis on the stock return risk of the companies
Critically analyze, compare, and evaluated what are the differences between the two years of the company's stock price performance. Justify your opinions or comments and outcomes your can draw from it, with a short discussion only for each point.

Question 3

Capital weighted allocation and estimate probabilities for each economic scenario would affect the expected return of an investment, The expected returns in different economic scenarios are as Table 1 Economic Scenarios and Expected Rate of Return.

Compute the expected return of each economic scenario if you are to invest RM 3,000in the bond market and RM 5000 in the stock market.

Compute and critically evaluate your new capital allocation strategies that could create more profit in different economic scenarios.

Assignment 2

Question 1:
Loan payments can be structured in THREE(3) ways? Critically explain how does it works and evaluate which would you choose for a housing loan.

Question 2:
What are the differences between technical analysis and fundamental analysis? Which technique is preferable to you? Critically justify and evaluate which technique should be used during the economic boom, normal, and crisis.

Attachment:- Investment planning.rar

Reference no: EM133122475

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