24 Jul WHAT SHOULD BE YOUR GROSS RETURN TO DELIVER ON YOUR PROMISE?
investment Show more You are an aggressive asset manager investing in Hong Kong stocks. Your highly-publicized investment objective is to provide clients with a performance equal to the return on the Hang Seng index plus 3%. You turn over the portfolio once a year to take advantage of tactical opportunities. You go through various brokers and they charge an average commission of 0.25% that includes some stamp and VAT tax. A typical bid-ask spread for the rather illiquid securities that you specialize in is in the order of 1% for transactions of 1000 shares or less. For transactions of more than 1000 shares brokers do not quote bid-ask spreads but try to execute the order at the best available price. Because you have become a large player on theses ecurities you are afraid that some of your transactions move the market price especially your large transactions of smaller companies. For large orders (1000 shares or more) you noticed that you have to buy (re: sell) well above (re: below) the previous market price; the difference is an average 1.5%. ? Over the year the Hang Seng index went up by 10%. What should be your gross return to deliver on your promise? Assume that half your transactions (in market value terms) are for orders of less than 1000 shares and half your transactions are for large orders (over 1000 shares). Show less
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.