PORTFOLIO ANALYSIS

Learning Objectives for Course

1. Conceptually understand the organization of the investment decision process, and distinguish between different types of investment companies,

2. Identify major types of securities, and calculate the return and risk for different financial assets,

3. Systematically understand diversification principles, analyze and evaluate different strategies for building a portfolio,

4. Possess the skills required to manage an investment portfolio under conditions of uncertainty by choosing such strategies that balance performance and risk within the investor’s objectives,

5. Demonstrate a critical awareness of current problems and new insights in the field of Portfolio Analysis, and demonstrate effective oral communication of complex arguments as well as developed listening skills.

Guidelines for assignment

 This is an individual assignment

 Ground your answer in relevant theory

 Plagiarism and reproduction of someone else’s work as your own will be penalized

 Make use of references, where appropriate – Use Harvard or APA referencing method.

Late submission are not accepted

 Structural elements should include an introduction, main body, and a conclusion

 Weight – 85%

 Word count guidance: 5000 analytical report

 Type of assignment: Extended Business report

Submit one single document and not lots of different files.

Assignment Brief

1. Conceptually demonstrate that you understand the investment decision process and distinguish between different types of investment companies and stock markets.

1. Identify major types of investments and calculate the return and risk.

1.   In the 3 circumstances below, systematically analyze and evaluate different strategies for building a portfolio.

4. Design bespoke portfolios for each type investor. Consider investment options and risk adversities.

(a) 20 year old single person, starting employment. Looking to save for the future to purchase a house or car or pay for a wedding. He needs a high interest and a high return to make a quick return for his money.

(b) Couple in their 30’s who wish to save for their retirement. They are working and wish to pay 2% of their salary a month towards something.

(c) Large multinational organization that wants to hedge against foreign currency exposure.

In each of the above, use examples and incorporate what you have learnt from the online Trading Game (BullBearings.co.uk)