Reference no: EM132412637

A)- You need to complete the Bloomberg BMC course. You are required to obtain the BMC Certificate and display it in your coursework.

B)- You must also explain your risk attitude (loving, neutral or averse) for the purpose of this assignment. Remember, your choice of portfolio must reflect your risk attitude and your investment aims and objectives. You should also choose your base (home) country of investment (i.e. are you a UK based investor; a US based Investor, etc.). What are your investment return and risk aims and objectivies

You also need to state the investment strategy you will be employing for your investment portfolio. For instance, is your fund a growth fund; a risk fund or constant return fund? Is it a passive or active investment strategy? Is it Top-down or bottom up or a mixture of both?

C)- You are required to state the reasons for the choice of your chosen (a) index and (b) stocks from the indices For instance, if you decide to invest in FTSE-100 Index, then you must provide a rationale for choosing FTSE-100 Index (think along the lines of FTSE's transparency, liquidity, growth, returns; global recognition of London as a leading financial and investment hub); and also a rationale for choosing at least 3 equities from FTSE-100 Index, for instance, GlaxoSmithKline, Lloyds Bank and British Gas (I chose these companies because they are stable, provide a sustainable return, have strong short-to-medium term outlook). Use financial data and KPIs (key performance indicators) from Bloomberg for each of the chosen index and the chosen companies to justify your choice of portfolio (e.g. income statement, balance sheet, financial ratios, segment data, credit rating, earnings estimate, relative performance, share price performance, etc.). Computation and explanations of intrinsic value (e.g., using a DDM and use of CAPM to determine the required rate of return including assumptions used). Fundamental Analysis, Technical Analysis, Industry Analysis etc..

D)- You need to discuss how to manage the risk of your investment portfolio. For instance, diversifying your investments across different sectors and countries. Hedging. Risk adjustment performance measures using Sharpe, Treynor ratios, etc. Using beta and standard deviations as the measurements of risk, etc.

E)- What is the impact of exchange rate volatility and market risk on your chosen portfolio?

Given the volatility and movement in spot and forward exchange rates, you will discuss the impact of translation exposure, transaction exposure and economic exposure on your exposure. This question is more qualitative in nature, and will therefore, require a scholarly appraisal of exchange rate and market risk. In particular, you will need to explain the different types of exchange rate risks/exposures and their reciprocal impact on your portfolio.

Attachment:- Investment portfolio.rar