Reference no: EM131108013
Money Management: Final Assessment.
Question 1: Investing in a specific company. 20% of the grade, 1000 words
Choose a company in a part of the world and domain where you feel at ease, and which has both shares on the stock market and also corporate bonds outstanding. Describe the company, consider the recent performance (e.g. five years) of the shares and the bond you have selected. That means that you have to research the price of the chosen bond and the share price five years ago and today.
You should probably use Morningstar as your source but you are not obliged to.
Had you invested 50/50 in the bond and the share, what would your average annual return over the last five years have been.
Complete your answer with a reflection on how you found the exercise (easy/difficult, interesting/rather a chore). We are not looking for a particular view - only that you have one.
Question 2: An investment strategy based on funds. 65% of the grade, 3000 words
To answer this question you are to develop an investment strategy specifically for yourself, and as realistic as possible, and reflecting your view of macro-economics and its impact on financial markets.
First analyse your own situation and risk profile (character, life-style, time horizon, objectives, etc) and your macro-economic view, then reflect them in a portfolio of mutual funds or ETFs using examples and providers chosen from David Costa's book (but you can also use any mutual fund or ETF available in the Morningstar database).
Before selecting the investment vehicles you will need to determine your asset allocation and justify it. Normally five to seven mutual funds and ETFs funds will suffice for diversification. Bring an element of timing into your investment plan.
You are not obliged to one type over the other; make you choices and say why. That will require you to describe the funds. You should also wish to reflect your own view on likely global economic developments.
Question 3: How will you use your nestegg? 15% of the grade, 500 words
Assume that you have built up funds from the portfolio in Question 2. How might you use such a nestegg in your retirement?
N.B. As this is an academic paper, you must use the Harvard referencing system. You will be penalized for inaccurate, missing and erroneous referencing. If you are unsure on how to reference using the Harvard referencing system please review the video tutorial at
|
What causes conflicts in the ranking
: How is a net present value profile used to compare projects? What causes conflicts in the ranking of projects via net present value and internal rate of return?
|
|
Change in demand-supply relationships
: Can someone help me determine the best ways to remember the relationships between supply and demand including shifting curves versus change in demand/supply relationships to price etc. a diagram would be amazing.
|
|
Agreement between portugal and spain
: Which is An agreement between Portugal and Spain which declared that newly discovered lands to the west of an imaginary line in the Atlantic Ocean
|
|
Number of weekly customer contacts for sales personnel
: Sales personnel for Skillings Distributors submit weekly reports listing the customer contacts made during the week. A sample of 65 weekly reports showed a sample mean of 18.5 customer contacts per week. The sample standard deviation was 5.8. Provide..
|
|
Investing in a specific company
: Choose a company in a part of the world and domain where you feel at ease, and which has both shares on the stock market and also corporate bonds outstanding.
|
|
Do the net present value (npv) and internal rate of return
: Do the net present value (NPV) and internal rate of return (IRR) always agree with respect to accept-reject decisions? With respect to ranking decisions? Explain.
|
|
How did his deposit change lending capacity
: In December 1994, a man in Ohio decided to deposit all of the 8 million pennies he had been saving for nearly 65 years. (His deposit weighed over 48,000 pounds!) With a reserve requirement of 5 percent, how did his deposit change the lending capacity..
|
|
Dates when the floating-rate payments are made
: A bank composes a 2-year, zero-cost collar for a $20 million portfolio offloating-rate loans by buying the floor and selling the cap. The floor strike is2.5%, the cap strike is 4.7%, and the reference rate is LIBOR.
|
|
Improving the political social and economic fortunes
: Evaluate this statement made by a hypothetical historian: "The 20th century represented a consistent trend toward improving the political, social, and economic fortunes for all people of the world
|