need help with the attached assignment. It is an investment and portfolio management couse

Investments\tand\tPortfolio\tManagement\t-\tGROUP\tAssignment\tA Instructions: This\tassignment\tmust\tbe\tcompleted\tin\tgroups\tof\tthree\tto\tfour\tstudents.\tAll\tsections\tare\tto\tbe completed\tand\tsubmitted\tonline\t(in\ta\tsingle\tPDF\tdocument)\tvia\tTurnitin. Applications\tto\tcomplete\tthe\tassignment\tindividually,\tor\tin\tpairs,\twill\tbe\tconsidered\tbut\tmust be pre-approved by the topic coordinator. Should you wish to complete the assignment individually,\tor\tin\ta\tpair,\tplease\temail\tthe\ttopic\tcoordinator. Client\tBriefing: Mr\tGerald\tRogers,\tCEO\tof\tABC\tExploration\tLtd,\tis\tcurrently\t63\tyears\tof\tage\tand\tis\tplanning\tto retire at age 65. His current income is $150,000 (indexed to inflation) and is more than sufficient to meet his current annual expenditure of $85,000. Gerald has an investment portfolio\tcurrently\tworth\t$2.0\tmillion\tand\ta\tfurther\t$110,000\tin\tsavings\tallocated\tacross\ta variety of short-term money market securities. The composition of Gerald's investment portfolio\t(which\tdoes\tnot\tinclude\this\tsavings)\tis\tdetailed\tin\tTable\t1,\tbelow. In\taddition\tto\tthe\tabove\tinformation,\tGerald\thas\talso\tnoted\tthat\the\twill\trequire\t$1,000,000\tin 1\tyear\tto\tpurchase\ta\thouse\tfor\this\tson's\t21st\tbirthday. Table\t1\t-\tInvestment\tPortfolio\tComposition Portfolio\tHoldings: Weighting: iShares\tCore\tComposite\tBond\tETF 65% BHP\tBilliton 10% ANZ 10% Commonwealth\tBank 15% Section\tA\t[35\tMarks] Develop\tan\tinvestment\tpolicy\tstatement\tbased\ton\tthe\tclient\tbrief\tprovided\tabove. - Your\tIPS\tmust\taddress\tthe\tfollowing\tcomponents: o Return\tObjective* o Risk\tTolerance o Liquidity o Time\tHorizon o Unique\tCircumstances/Preferences *The\trequired\treturn\tfor\tthis\tclient\t(post-retirement)\tshould\tbe\tbased\ton\tan\tIRR\tcalculation. This\twill\tinvolve\tpreparing\ta\tschedule\tof\t[required]\tfuture\tcash\tflows,\tforecasting\tthe\tfuture portfolio\tvalue\tand\tusing\texcel\tto\tcalculate\tthe\tinternal\trate\tof\treturn. All\tassumptions\tused\tin\tthe\tformulation\tof\tthe\tIPS\tmust\tbe\tclearly\tstated\tand\twell\tjustified. BUSN3029\tInvestments\tand\tPortfolio\tManagement\t-\tSemester\t2,\t2016 1\tof\t3 Section\tB\t[15\tMarks] Identify\tappropriate\tbenchmark\tportfolios\t(using\teither\tindices\tor\tfunds)\tthat\tcan\tbe\tused\tto represent\ta\tpassive\texposure\tin\t(1)\tmoney\tmarket,\t(2)\tfixed\tincome,\t(3)\tdomestic\tequity\tand (4) international equity market securities. Prepare a brief discussion on each asset class regarding\tits\thistorical\tperformance\tand\tprovide\t(using\tindustry\treports/research)\tsome\tbrief commentary\ton\t(1)\texpected\tshort-run\tand\t(2)\texpected\tlong-run\tperformance\t[of\teach\tasset class]. To receive full marks for this section, you must provide statistics on return, risk and distribution characteristics of each asset class. The risk and return statistics should be calculated,\tin\texcel,\tusing\thistorical\tdata\tover\ta\t3\tto\t5\tyear\ttime\tperiod. Section\tC\t[15\tMarks] Part\tA Identify\tan\talternative\tasset\tclass\tof\tyour\tchoosing\tand\tprovide\ta\tbrief\tsummary/overview\tof (1)\twhat\texposure\tthe\tasset\tclass\tprovides,\t(2)\tits\trisk-return\tprofile\tand\t(3)\thow\tit\tco-moves with\tcore\tasset\tclasses\t(HINT:\tyou\twill\tneed\tto\tuse\ta\tcorrelation\tmatrix\tto\tassess\thow\tthe\tasset classes\tco-move\twith\tone\tanother\t-\tthe\tcorrelation\tmatrix\tshould\tbe\tbased\ton\t3\tto\t5\tyears\tof historical\treturn\tdata). Section\tD\t[35\tMarks] Part\tA Critique\tthe\tsuitability\tof\tGerald's\tcurrent\tasset\tallocation\t(detailed\tin\tTable\t1\t+\this\tsavings). Your\tdiscussion\tmust\trelate\tto\tthe\tinvestment\tpolicy\tstatement\tdeveloped\tin\tsection\tA. Part\tB Develop\ta\tpolicy\tportfolio\tthat\tis\tconsistent\twith\tthe\tIPS\tdevised\tin\tsection\tA,\tabove. The\tpolicy\tportfolio\tmust\tinclude\t(1)\tthe\tcore\tasset\tclasses\tof\tcash,\tfixed\tincome\tand\tequities and (2) the alternative asset class identified in section C. It is imperative that you appropriately\tjustify\tthe\tinclusion\tof\teach\tasset\tclass\t(i.e.\trelate\tthe\tasset\tclass\tback\tto\tthe IPS)\tand\tclearly\tspecify\tthe\tweighting\tof\teach\tasset\tclass\tin\tthe\tportfolio. Exposure to each asset class should be achieved through the hypothetical purchase of multiple\texchange\ttraded,\topen-ended\tand/or\tclosed-ended\tfunds.\tTo\tjustify\tthe\tinclusion\tof each\tfund,\tyou\twill\tbe\trequired\tto\tappraise\tthe\thistorical\tperformance\t[of\teach\tfund]\tusing evaluation techniques covered in week 2 of this topic. It is also important that you differentiate between active and passively managed funds and discuss why a particular investment style (i.e. active versus passive) was chosen. Should you elect to do so, a combination\tof\tactive\tand\tpassively\tmanaged\tfunds\tcould\talso\tbe\tused\tin\tyour\tportfolio\t(with justification)\tand\tmore\tthan\tone\tfund\tper\tasset\tclass\tcan\tbe\tutilised. You\tmust\talso\tprovide\tin\ta\tsummary\ttable,\tthe\texpected\treturn,\tdistribution\tand\trisk\tprofile of\tthe\tpolicy\tportfolio. BUSN3029\tInvestments\tand\tPortfolio\tManagement\t-\tSemester\t2,\t2016 2\tof\t3 Part\tC How is this portfolio expected to perform in an economic downturn? In answering this question,\tplease\talso\tcomment\ton\tthe\tVaR\tand\tsemi-variance\tof\tyour\tportfolio. Presentation\tand\tSubmission\tof\tGroup\tAssignment The\tassignment\tmust\tbe\tstructured\tas\ta\treport\tand\tsubmitted\tas\ta\tPDF\tdocument\tvia\tTurnitin. A\tTurnitin\tdropbox\ton\tFLO\twill\tbe\tactivated\tcloser\tto\tthe\tassignment\tdue\tdate. An\texcel\tfile\twith\tsupporting\tcalculations\tmust\talso\taccompany\tyour\tsubmitted\twork. All\twork\tmust\tbe\tappropriately\treferenced. The\tassignment\tmust\tnot\texceed\t2,500\twords.\tThis\tword\tlimit\tdoes\tnot\tinclude\tthe\tTable\tof Contents\tand\tAppendices\t(if\tany). BUSN3029\tInvestments\tand\tPortfolio\tManagement\t-\tSemester\t2,\t2016 3\tof\t3