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Which of the following tools is sometimes used to rank investment proposals? 01. 02. 03. 04. 05. Project assessment guide (PAG). Investment opportunity index. Annuity index. Profitability index. Capital ranking index.

1. How to compare different assets in investment selection process? 2. What are the quantitative characteristics of the assets and how to measure them? 3. How does one asset in the same portfolio influence the other one in the same portfolio? 4. And what could be the influence of this relationship to the investor’s portfolio? 5. What is relationship between the returns on an asset and returns in the whole market (market portfolio)?

Asset allocation is the decision of how you divide your investment portfolio between various assets. Typical asset categories include cash or short-term securities (Treasury bills, CDs, etc.), bonds (municipal bonds, corporate bonds, etc.), and equity funds or equities (stocks, stock mutual funds, etc.). The following table illustrates several model portfolios that you can use as a basis for your own investment plan, depending on such factors as your time horizon, risk tolerance, and investment philosophy. Model Portfolios and Time Horizons Risk Tolerance/Investment Philosophy 0–5 Years 6–10 Years 11+ Years High Risk/Aggressive 10% Cash 20% Bonds 100% Equities   30% Bonds 80% Equities     60% Equities     Moderate Risk/Moderate 20% Cash 10% Cash 20% Bonds   40% Bonds 30% Bonds 80% Equities   40% Equities 60% Equities   Low Risk/Conservative 35% Cash 20% Cash 10% Cash   40% Bonds 40% Bonds 30% Bonds   25% Equities 40% Equities 60% Equities…

Asset allocation is the decision of how you divide your investment portfolio between various assets. Typical asset categories include cash or short-term securities (Treasury bills, CDs, etc.), bonds (municipal bonds, corporate bonds, etc.), and equity funds or equities (stocks, stock mutual funds, etc.). The following table illustrates several model portfolios that you can use as a basis for your own investment plan, depending on such factors as your time horizon, risk tolerance, and investment philosophy. Model Portfolios and Time Horizons Risk Tolerance/Investment Philosophy 0–5 Years 6–10 Years 11+ Years High Risk/Aggressive 10% Cash 20% Bonds 100% Equities   30% Bonds 80% Equities     60% Equities     Moderate Risk/Moderate 20% Cash 10% Cash 20% Bonds   40% Bonds 30% Bonds 80% Equities   40% Equities 60% Equities   Low Risk/Conservative 35% Cash 20% Cash 10% Cash   40% Bonds 40% Bonds 30% Bonds   25% Equities 40% Equities 60% Equities…

Using the stock price data for any two companies provided below carry out the following tasks:  1.Compute, for each asset:  i.Total Returns  ii.Expected returns  iii.standard deviation  iv.Correlation Coefficient  2.Construct the variance-covariance matrix  3.Construct equally weighted portfolio and calculate Expected Return, Standard Deviation and Sharpe ratio.  4.Reconstruct equally weighted portfolio and calculate Expected Return, Standard Deviation and Sharpe ratio.  5.Use Solver to determine optimal risky portfolio.  6.Create hypothetical portfolios (commencing from Weight A=0 and weight B=100)  7.Calculate Expected return and Standard Deviation for all the above combinations  8.Graph the efficient frontier  9.Graph the optimal portfolio  10.Assuming that the investors prefers lower level of risk than what a portfolio of risky assets offer, introduce a risk free asset in the portfolio with a return of 3%  11.Using hypothetical weights (A= Portfolio of Risky Assets, B= 1 Risk Free…

You are interested in investing in an equity fund. Which step of the investment management process will require you to understand the investment management style? A) Defining the investment objectives and constraints. B) Setting the investment strategy. C) Implementing and managing the portfolio. D) Monitoring and reviewing.

Which of the following way to classify and measure financial instruments do you favor?  Justify your answer.    IFRS 9: See page 7 of IFRS 9-Project-Summary.pdf.  Then click OK. U.S. GAAP including ASU 2016-01: A summary is on page 3 of Chapter 5 Financial Instruments-3.doc    The first approach proposed by Messrs. Linsmeier and Siegel on pages 182-183 of FASB-ASU No. 2016-01.

Which of the following best explains the role of diversification as part of an investment strategy?   a.Choosing investment vehicles with varying levels of risk/reward   b.Spreading investments out over time   c.Balancing investment amounts with debt amounts   d.Soliciting the opinions of multiple financial planners

13. Strategy 4 - Asset allocation Asset allocation is the proportion of your overall investment portfolio that you have invested in various categories of assets. Typical asset categories include, for example, equities (stocks or stock mutual funds), bonds (or bond funds), and cash (or cash equivalents such as Treasury bills). The following table illustrates several model portfolios that you can use as a basis for your own investment plan, depending on various factors, such as your time horizon, your risk tolerance, and your investment philosophy: Risk Tolerance/Investment Philosophy Asset Allocation and Time Horizons 0–5 Years 6–10 Years 11+ Years   10% Cash 20% Bonds 100% Equities High Risk/Aggressive 30% Bonds 80% Equities     60% Equities               20% Cash 10% Cash 20% Bonds Moderate Risk/Moderate 40% Bonds 30% Bonds 80% Equities   40% Equities 60% Equities             35% Cash 20% Cash 10% Cash Low Risk/Conservative 40% Bonds 40% Bonds…

Analyse the first citizens bank risk profile with specific reference to concentration risk,

Which of the following does attribution analysis involve? A) Carrying out sensitivity analysis to the actual holdings of shares in the portfolio. B) Comparing the performance of a fund to its stated benchmark or its peer grouping. C) Examining past annualised returns across 5 and 10 years to determine whether the investment style is true to label. D) Breaking down fund performance to find which proportion comes from sector and security selection, asset allocation and their interaction.

Analyse the cibc risk profile with specific reference to market risk .

which of the following past returns should mutual funds publish in their annual reports? A.Excess return B.Geometric average return C.Arithmetric average return D.Index return

How do you perceive the relationship between risk and return in the context of investment portfolios? Can you provide examples of how an investor might balance the two, and what factors influence their decision-making process in achieving an optimal risk-return profile?

How do you find historical returns and benchmarks on different funds?

Karen Kay, a portfolio manager at Collins Asset Management, is using thecapital asset pricing model (CAPM) for making recommendations to her clients.Her research department has developed the information shown in the followingexhibit.Forecast Returns, Standard Deviations, and BetasForecast Return Standard Deviation BetaLow β stock (X) 14.0% 36% 0.8High β stock (Y) 17.0% 25% 1.5Market index 14.0% 15% 1.0Risk-free rate 5.0%(a) Calculate expected return and alpha for each stock.(b) Identify and justify which stock would be more appropriate for an investorwho wants to add this stock to a well-diversified equity portfolio.(c) Now consider Karen employs the “Betting Against Beta” strategy and let, , and denote the portfolio weights of the investmentin each of the asset classes (e.g. risk-free asset, low beta stock, market index,high beta stock, respectively) such that .According to its investment mandate, Collins Asset Management shouldtarget a gross leverage of 2.3. How much does she have to…

Kindly provide the following given that your current status is middle average and current position is marketing strategist.

The results presented in the chapter are based on historical data. Of what use are these results to a portfolio manager who may be making an investment decision today? Elaborate.

33.While recording investing transactions, all of the following functions need to be carried out, except: Group of answer choices Assessing investment performance and reporting Recording purchases, sales, and income Reviewing purchases, sales, and income transactions Recording market adjustments and reclassifications

You plan to simulate a portfolio of investments over a multiyear period, so for each investment (which could be a particular stock or bond, for example), you need to simulate the change in its value for each of the years. How would you simulate these changes in a realistic way? Would you base it on historical data? What about correlations? Do you think the changes for different investments in a particular year would be correlated? Do you think changes for a particular investment in different years would be correlated? Do you think correlations would play a significant role in your simulation in terms of realism?