THE FINANCIAL SERVICES INDUSTRY CRITICAL CONCEPTS RESEARCH ASSIGNMENT

Total Marks: $100$ Marks

Instructions:

$1.$ This is an individual assignment

$2.$ Review the selected cases and the accompanying questions.

$3.$ Write a detailed research report that answers all the questions.

$4.$ Ensure that all of your work is properly cited and include a reference list.

$5.$ The submission needs to be done through D$2$l only $($soft copy$).$

$6.$ The submission needs to be done through the word document only.

$7.$ Deadline: December $3,2023$

Marking Criteria:

$$ The research report will be assessed based on the rubric below.

$$ To achieve an exceptional or excellent$/$good mark, you must incorporate course theory and terminology into your response.

$$ You must include additional research to support your conclusions $($that is$,$ information you obtained from sources aside from the case studies$).$

$$

ASSIGNMENT QUESTIONS

$1.$ Discovery & KYC $10$ marks

$$ A new client comes in to see you to discuss trading stocks, male: age $45.$ He tells you he has $1\mathrm{.}5$ million net worth, and hates his old advisor. He has lost $$500$K in the past year and wants fresh eyes.

$$ What would you want to know about him before you make any recommendations?

$$ Provide a detailed listing, including supporting documentation, of how you would proceed.

$2.$ Subprime crisis $($discussed during the mortgage bond topic$)50$ marks

$$ Explain the entire Subprime crisis scenario and discuss CDS $($Credit Default Swap$)$ and CDO $($Collateralized Debt Obligation$).$ Hint: Discuss the role of Investment Bankers $($Lehman Brothers$),$ Insurance Companies $($AIG$),$ Banks $($Bank of America$)$ and Home Buyers

$3.$ Risk $20$ marks

$$ Explain the meaning of i$)$ Ability to take the risk and ii$)$ Willingness to take the risk

Also explain the different risk personalities like $1)$ Risk taker $2)$ Risk neutral $3)$ Risk averse

$4.$ Financial Statement Analysis for two largest banks in Canada. $20$ marks

RBC vs$.$ TD

Regarding each of the banks$$ financial results in $2022$:

a$)$ Identify each of the banks$$ diluted earnings $($or loss$)$ per common share for the year.

$($It is always a dollar value, not a percentage$)$

b$)$ Identify each of the banks$$ Tier $1$ capital ratios.

c$)$ Calculate Return of Equity $($ROE$)$ and Return on Assets $($ROA$)$

d$)$ Identify each of the banks$$ efficiency ratios $($if any bank records more than one listing of that ratio, you will identify the lower ratio value$).$

$($e$)$ Explain what an efficiency ratio is$,$ how it is calculated, and what it means. Be careful that you provide information on this ratio in terms of what it means for banks, not what it is for manufacturing and other companies, which is quite different$)$

THE FINANCIAL SERVICES INDUSTRY CRITICAL CONCEPTS RESEARCH ASSIGNMENT

Case Study Rubric

Names: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Skills, Knowledge, Ability Exceptional

$90-100$ Good $-$ Excellent

$70-90$

Minimal Effort $-$ Average

$50-70$

General Understandings Learners have a clear understanding of the case $$ it was evident that they researched the case study and had knowledge beyond the case study. Learners have some understanding of the case $$ it was evident that they had conducted some research but had little knowledge beyond the case study. Learners have little to average understanding of the case $$ It was evident that they conducted little research and had limited knowledge beyond the case study.

Theory$/$Terminology Incorporation

Learners incorporated course theory and terminology into their analysis. Learners incorporated some course theory and terminology into their analysis. Learners incorporated little course theory and terminology into their analysis.

Analysis Learners added value to their answers by incorporating additional research to support their analysis. Learners added some value to their answers by incorporating some additional research to support their analysis.

Learners did not add any additional value to their answers as no additional research was provided to support their analysis.

Writing Skills

Written report was clear, concise, and free of spelling and grammatical errors. The writing conveyed a strong understanding of the case material. Written report was clear and free of most spelling and grammatical errors. The writing conveyed a basic understanding of the case material. Written report was vague and lacked a concise voice. It contained significant spelling and grammatical errors. The writing conveyed a minimal understanding of the case material.

Total Marks

$\_\_\_\_/100=\_\_\_\_/20$