Please provide a detailed answer for each questions, including valuation techniques with answers for the selected equities and bonds.Client $4$ is a $55$ year old chef and owns three successful restaurants which provide the

client with an income of $90,000$ p$.$a$.$ The client has savings of $150,000$ and owns their

house with no mortgage outstanding. Their house is currently worth $250,000.$ The

client is divorced and has two children aged $21$ and $22.$ The client$$s children are

financially independent of their parents but have student loans outstanding from their

time at university amounting to $52,000$ in total. The client has recently developed

some health problems that have made working difficult so they plan to retire and sell

their restaurants which are currently valued at $2,000,000.$ The client plans to pay$-$off

their children$$s debt and buy one small flat for both their children to live in$.$ The client

wants to use the remaining money from the sale of their restaurants to fund their

retirement and to pursue their hobby of traveling. The client is a risk lover. b$)$ Provide a table listing all of the investment instruments that you have chosen to

include in the final portfolio for your client. Demonstrate that purchasing these

investment instruments has not cost more than the total amount of money the

client had available for investment.

$(10$ marks$)$

Guidance:

List each of the investments you are recommending e$.$g$.$

Shares

Bonds

Alternative investments etc.

List all of the individual assets you have chosen for the client. State the number of

shares$/$ bonds etc. that you have purchased, the current market price for each asset

and the total amount invested in each individual asset.

State the proportion of cash invested in each category $($bonds$,$ shares etc.$)$

State all figures in UK $.$

Give the total cost of the portfolio of all investments and compare this figure to the

answer you have given in part $($a$).$

$($c$)($i$)$ Explain which equities you have chosen to include in your client$($s$)$ portfolio and

explain why you have chosen to include these companies.

BEAM$031$J Assignment $20237$

$(25$ marks$)$

Hint: You will need to explain how the investments you have chosen meet the needs

of the client outlined in the Investor Policy Statement.

Guidance:

Explain why you have chosen each of the equities$/$ funds and why you think they are

suitable for the client. You should use both the characteristics of your client and

course material to justify your choice of investments; it is your justification for the

choices that you make that will receive most marks.

$($c$)($ii$)$ Detail each of the investment instruments, other than equities, that you have

included in your client$$s portfolio. Explain why you have included them and how

and why you think these investments are suitable for your client$($s$).$

$(25$ marks$)$

Hint: You will need to explain how the investments you have chosen meet the

needs of the client outlined in the Investor Policy Statement.

Guidance:

Explain why you have chosen each of the non$-$equity investments and why you think

they are suitable for the client. You should use both the characteristics of your client

and course material to justify your choice of investments; it is your justification for

the choices that you make that will receive most marks.

$($iii$)$ Using CAPM, calculate the beta and expected return of your portfolio. How do

you think that your portfolio will perform compared to the market? Provide your

calculations and assumptions.

$(20$ marks$)$

Guidance:

Look$-$up$,$ or calculate, the beta of each individual investment.

Using CAPM calculate the beta and expected return of your portfolio. You may use

the historic compound annual growth rate $($CAGR$)$ to calculate the return.

State how do you think that your portfolio will perform compared to the market and

explain why.

For non$-$equity investment you can use the assumed betas given in the assessment

section of ELE.

You must give the source of any data you use.

$($iv$)$ Explain the limitations of the portfolio you have created.Are there any ways in which your suggested portfolio does not perfectly reflect the

needs and investment objectives of your client?