Develop an investment strategy specifically for yourself

Assignment Help Management Theories

Reference no: EM131095173

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

Reference no: EM131095173

Questions Cloud

How do insurance companies minimize its impact on premiums : What is adverse selection? How do insurance companies minimize its impact on premiums? Can adverse selection be a reversible principle in favor of the consumer?

Newly hired professor earn more in real the real terms : The starting salary for a new assistant professor was $35,000 in 2000 and $65,000 in 2015. The value of CPI for 2015 was 164.3 compared to 55.6 in 2000. In which year did a newly hired professor earn more in real the real terms? Show your calculation..

Optimal consumption of the individual : Compute the amount of each good in the consumer's optimal basket. Explain your steps. Assume that the government adds a tax of $1 to the price of luxuries. How does it affect the optimal consumption of the individual?

What are the coordinates of your endowment point : There are two possible states of the world next year. If you keep your job, your income is equal to your labor market earnings E plus your non-labor income Y. Consider a graph with “keep job payoff” on the horizontal axis, and “lose job payoff” on th..

Develop an investment strategy specifically for yourself : 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 an..

Discuss the competitive nature of the sydney food : Analyse how food and beverage outlets can use tools such as "Five forces analysis" and the VRIO concept to ensure the y meet their strategic objectives. In your answer discuss the competitive nature of the Sydney food and beverage industry

Impact of a highly inflationary economy : What is the likely impact of a highly inflationary economy on a firm's ability to pay dividends? Would you expect this impact to be greater or smaller for a rapidly expanding firm? Why?

Calculate as economist the total cost for one birdhouse : Walter builds birdhouses. He spends $5 on the materials for each birdhouse. He can build one in 30 minutes. He is semi-retired but earns $8 per hour at the local hardware store. He can sell a birdhouse for $20 each. Calculate as an economist the tota..

Recap the info regarding organization : Recap the info regarding organization. Glimpse into the future for the organization based on your learning. Combine all parts into a APA formatted product.

User Account

All Pages