c) Obtain information on the following two funds:(i) Colonial First State Imputation(ii) Vanguard Emerging Markets Shares Index FundCompare the risks to investors presented by each of these fund and identify thetypes of investors that would favour these funds.

COLONIAL FIRST STATE IMPUTATION FUND: It provides investors with exposure to Australian equities,…

Answered: Obtain information on the following two…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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w Select the appropriate term to complete the sentences. A offers investors the opportunity to pool their investment dollars with a group of other investors, which in turn allows them the ability to purchase multiple security investments. The investments are collected into a single Mutual funds may prove to be a smarter investment option for the investor that prefers to investment risk.
With the aid of relevant examples, contrast value investing with growth investing and show how these are applicable to the portfolio management process. Discuss which type of shares are most suitable to be assessed with the Piotrowski framework? 3. Critically discuss any recent news article of your choice within the context of the Efficient Market Hypothesis. 4. What are the key differences between the Arbitrage Pricing Theory (APT) and the Capital Asset Pricing Model (CAPM) as they relate to portfolio management?
The FTSE 100 Index is an example of a benchmark for measuring the performance of an Equity fund. What is the role of a benchmark in measuring performance of a fund? Give an example of a Bonds Benchmark.
You are looking for an investment vehicle that has two characteristics. First, you want an incentive structure for asset managers where they earn more money when you (the investor) earns more money. Second, you want a mostly diversified pool of investments. Which vehicle is your best option? O Hedge fund Closed-end mutual fund Open-end mutual fund
When you are buying shares of an exchange traded fund (ETF) you purchase your shares at which price? *** OA. Average between the Bid and Ask Price OB. NAV (Net Asset Value) OC. Bid Price O D. Ask Price OE. More information is needed to answer this question
An insurance fund is analysing the performance of three different fund managers A, B and C. Each manager invests in one third of all asset classes to maintain a well diversified portfolio. The following information is available: A B C Market portfolio Average net return (%) 5 8 9 9 Volatility (%) 18 24 21 20 Beta 0.8 1.1 1.3 A risk free rate is established to be 2%. Calculate for each of the fund managers the expected return using CAPM, ex post Sharpe Ratio, Treynor Ratio, M2 alpha and Jensen’s alpha. Interpret your results.
Consider a capital market with two securities. The payoffs of these securities in the two equally likely states of the world are given in the table below. Payoff Price Security A в State 1 State 2 PA = 2 Pg = 3 4 2 3 4 a) Discuss the concepts of complete capital markets, pure (Arrow-Debreu) securities, and pure factor portfolios. Establish whether the capital market in this case is complete and determine the prices of the pure securities by arbitrage.
Given a simple world with two assets, a bond fund and a stock fund, clearly detail the steps involved in arriving at the 1) efficient frontier, and 2) market (optimal) portfolio.
An investor considers two mutual funds. Based on past experience, the first fund has an expected return of 0.08 and a standard deviation of 0.05. The second fund has an expected return of 0.07 and a standard deviation of 0.06. There is no reason to assume that future performance of these funds will differ from past performance. However, the second fund has a guarantee attached that the return in any year will not be negative.RequiredA. Which fund would a rational investor be likely to buy according to single-person decision theory?B. The investor buys the second fund. Use prospect theory to explain why.
Consider the information on the market, the risk-free asset, and a mutual fund. You want to build a two-asset portfolio comprising the market portfolio and the risk-free asset such that your portfolio beta is the same as the mutual fund. What is the portfolio weight on the market in your portfolio? Mutual Fund Market Risk Free E(k) 11.1% 8.5% 2.0% Beta 1.4 1 0
Explain the term 'beating the market in the context of portfolio investment. Identify and critically analyse some of the strategies applied by investors when selecting securities in order to achieve their investment objective. Include consideration of any challenges to the implementation of such strategies.
What is different between long-term mutual funds and money market mutual funds and what are the main regulators of mutual funds?

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Obtain information on the following two funds: (i) Colonial First State Imputation (ii) Vanguard Emerging Markets Shares Index Fund Compare the risks to investors presented by each of these fund and identify the types of investors that would favour these funds.