1. Assume that you manage your clients portfolio with the initial fund of $200 million. Form one...
Question:
1. Assume that you manage your client’s portfolio with the initial fund of $200 million. Form one hypothetical portfolio with a call sign “Rooster” of financial assets listed in the US on the first trading day in October 2023, which would be held for six months. The portfolio must consist of three asset classes: common equity stocks, bonds and derivatives.
2. Clearly state the objectives, constraints and evaluation methods of this portfolio.
3. Describe, explain and discuss the methods chosen to form this hypothetical portfolio, including but not limited to:
3.1 How to select a sample of financial assets (consisting of at least 20 common equity stocks; 5 bonds; 5 derivatives).
3.2 How to select and assign a weight to each financial asset in a portfolio.
3.3 How to estimate risk and return of financial assets during the holding period.
4. Compute the expected risk and return on the portfolio for the holding period at the time of forming the portfolio.
5. Evaluate the interim performance of the portfolio during the holding period as of 30 Nov 2023.
6. Provide all related working files (e.g., an EXCEL file) as supplementary.
The report should consist of three sections:
1. An introduction provides key messages.
2. A main body describes the detailed information.
3. A conclusion provides a key summary.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill