You have just been appointed to the board of a small dedicated emerging market asset manager with total assets under management (AUMs) of GBP250 million pounds, Tiger Investment Management, which believes emerging markets will continue to outperform developed markets in terms of performance over the next decade. The board is comprised of the three founders, who are all ex-bankers predominantly focused on loan provision to emerging market projects, however they have very little investment management experience. The board also has a non-executive director with business development and fundraising experience in the asset management industry, but no direct portfolio management experience.

The board has asked that given your portfolio management experience that you help brief for the board on the key theories of asset valuation, mean-variance analysis and portfolio optimisation, their critique and how they would apply to Tiger Investment Management.

Your brief will cover:

a)Identifying the key theories of asset valuation, mean-variance analysis and portfolio optimisation and their characteristics.

b)Presenting a structured critique of the key theories providing a rationale for your argument.

c)Linking how the theories apply for the asset management industry at large and specifically for Tiger Investment Management.

d)Conclude to the board given your discussion in part a), b) and c) above how they should leverage these theories to optimize their investment strategy returns and minimize their risks.

Given the technical background of the board, be sure to explain your arguments in a manner easy to comprehend by board members. Your objective by providing this brief is to ensure that the board can implement various takeaways from your report.

  

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ch 0 Question 7 What is the method(s) not used in assessing Project Risk? Sensitivity Analysis Break Even Analysis Scenario Analysis Cost Benefit Analysis Question 8 True When calculating the Break Even Analysis, one needs to subtract the FW of the cash inflows from the PW of the cash outflows. False Question 9 Scenario Analysis usually does not consider: Worst Case Scenario Ⓒ Do Nothing Scenario Most Likely Case Scenario Best Case Scenario O i P 5 pts 5 pts 5 pts ch 0 Question 7 What is the method(s) not used in assessing Project Risk? Sensitivity Analysis Break Even Analysis Scenario Analysis Cost Benefit Analysis Question 8 True When calculating the Break Even Analysis, one needs to subtract the FW of the cash inflows from the PW of the cash outflows. False Question 9 Scenario Analysis usually does not consider: Worst Case Scenario Ⓒ Do Nothing Scenario Most Likely Case Scenario Best Case Scenario O i P 5 pts 5 pts 5 pts

Answer rating: 100% (QA)

Answer Briefing on Asset Valuation MeanVariance Analysis and Portfolio Optimization for Tiger Investment Management a Key Theories Asset Valuation Asset valuation is the process of determining the wor... View the full answer