Which investment is the safest and its trend with respect

Assignment Help Finance Basics
Reference no: EM132569647

This figure shows year-by-year historical rates of return (inflation adjusted) for five types of investments instruments traded in the US capital markets from 1925 to 2011. Each line represents the return & risk (beta) relationship of its respective instrument. You have to portfolio report for a Pakistani investor in the US. She wants to know the following details before investing her money in the US capital market as part of her international portfolio diversification strategy.

Which investment is the safest and its trend with respect to inflation. What is the risk-return tradeoff if she invests half of her money in this instrument?

Which type of instrument can earn her maximum return and what would be the risk-return tradeoff in this case if she wants to invest 25% of money in such an instrument?

If you would be investing in all 5 instruments equal amount of money, what risk return motivation in presence of the Inflation, would you be using for this portfolio in light of the information provided in the figure above? (Use macroeconomic analysis and stock returns for equity stocks).

Reference no: EM132569647

Questions Cloud

Calculate the company net cash flows from financing activity : Calculate THE Company's net cash flows from financing activities for 2021. THE Company reported the selected account balances for 2021.
What is trait linked to sex : What is a trait linked to sex? What is the difference in inheritance between boy and girl for traits linked to sex?
What the company collected cash from credit customers : What THE Company collected cash from its credit customers during 2023 in the amount of?THE Company uses the aging method to estimate its bad debt expense.
What is the general purpose of an auditors report : GeoPetro is independent oil and natural gas Company with headquarters in San Francisco, California. What is the general purpose of an auditors report
Which investment is the safest and its trend with respect : Which investment is the safest and its trend with respect to inflation. What is the risk-return tradeoff if she invests half of her money in this instrument?
Find out the amount of money to be invested in stock : You have been given a task by your US based client, to construct a Portfolio for an investor willing to invest $1 million but his portfolio would
Description of the health condition diabetes mellitus : Description of the health condition Diabetes Mellitus. Explain why the resources you chose are appropriate.
Discuss the statutory and common law positions : Discuss the statutory and common law positions of the directors in the case study above. Explain this question with AGLC reference style
Which the carrying amount of the asset exceeds : An impairment loss is the amount by which the carrying amount of the asset exceeds the sum of the expected future net cash flows.True/false

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd