financial assets and markets homework help

Boost your journey with 24/7 access to skilled experts, offering unmatched financial assets and markets homework help

Trusted by 1.1 M+ Happy Students

4.4Trust Pilot

4.4Edu Reviewer

5App Review

4.8Student

WhatsApp Support

Get Instant
Online Homework Help
via WhatsApp

Get instant homework help from top tutors—just a WhatsApp message away. 24/7 hw help support for all your academic needs!

★★★★★

2M+ students trust TutorBin

Your WhatsApp Number

⚡ Instant reply

🔒 100% private

👨‍🏫 Top tutors

🌍 All subjects

^*Get instant homework help from top tutors—just a WhatsApp message away. 24/7 support for all your academic needs!

2M+ Students Helped24/7 Live SupportExpert TutorsAll Subjects CoveredInstant Response100% ConfidentialTop Rated ServiceMoney-back Guarantee2M+ Students Helped24/7 Live SupportExpert TutorsAll Subjects CoveredInstant Response100% ConfidentialTop Rated ServiceMoney-back Guarantee

Recently Asked financial assets and markets Questions

Expert help when you need it

Q1:M107 Asset Pricing Coursework There is a choice of 5 coursework questions with a total opportunity of earning 100 points: 25 marks are awarded for attempting each of the first 4 questions, and 50 marks awarded for attempting Question 5. There are therefore two options: • answer the first 4 questions, or • answer question 5 and pick two questions from the previous 4. You may use various sources for corporate information. You have use of LSEG Refinitiv workspace which is likely to be the most useful platform for these assessments. Use of Python is also encouraged and details of how to use python are provided throughout the course. Coursework Questions 1. Build an efficient frontier using Python-25 points ➢ Subsection 1: select 5 companies, pull their historical prices over the period of 2010-01-01 and 2022-12-31 from Yahoo Finance or LSEG Refinitiv Workspace, and calculate their annualised return and volatility for the period. > Subsection 2: build the efficient frontier using 2000 simulations. > Subsection 3: specify the maximum Sharpe ratio portfolio (assuming a risk-free rate of 3%), report the weightings of each company in that portfolio and explain whether you would invest your money in this portfolio in the real world and why? 2. Equity CAPM - asset pricing theory/data run regression analysis- 25 points ➢ Subsection 1: define the CAPM and explain its primary purpose in the field of finance. Include the key components of the CAPM equation and their significance in evaluating the expected return of an asset. ➢ Subsection 2: Select 2 US companies from different industries and pull their historical daily prices over the past 10 years, 10-year yield (as risk free rate) and the daily historical prices of S&P500 from Datastream into excel. Run an OLS regression and interpret the estimated intercept and coefficient. ➢ Subsection 3: Critically evaluate the assumptions made in the CAPM and discuss their relevance in the real-world for investment decision-making. Highlight potential shortcomings of CAPM when applied to practical investment scenarios in both and active and passive portfolio management. 3. Option pricing - 25 points > Subsection 1: price the below European Call option using the Black-Scholes option pricing model using the following information: · Current Stock Price (So): $100 · Strike Price (K): $110 . Time to Expiration (T): 6 months (0.5 years) · Risk-Free Rate (r): 5% (expressed as a decimal) · Volatility (o): 30% (expressed as a decimal) Just as you are about to finalize the option price calculation, breaking news arrives that could potentially impact the stock's volatility. The news indicates that the company will be releasing a highly anticipated product within a week. As a result, there is a sudden surge in investor interest, and the market sentiment becomes more optimistic, leading to an increase in expected stock price movements. Reassess the option price calculation, taking into account the increased volatility. Assume that the new volatility value is 40% due to the upcoming product release > Subsection 2: plot the profit and loss diagram for short strangle and explain whether such strategy is positive or negative delta, gamma, theta, and vega > Subsection 3: in a covered call strategy (where you short a call option while owning the underlying stock), explain the importance of time to expiry in choosing which call option to short (assuming everything else remains equal) 4. Bond valuation - 25 points ➢ Subsection 1: A US Treasury 2.5% coupon bond maturing 15 August 2030 is trading at a clean price of 98-033/4 for value date 2 September 2023. The bond pays a semi-annual coupon on an actual/actual basis. What is the dirty price of the bond? ➢ Subsection 2: calculate the yield to maturity (YTM) and DV01 for a hypothetical bond with 10 year to maturity, 2% annual coupon, face value of $100m, and current dirty price of $75,206,268. Explain what DV01 implies. > Subsection 3: there is a 1-year project that starts in a years time. Your analysis shows that at the end of the 1 year investment, this project generates an 10% return on investment. You need to fund this project, you need to borrow from the debt market where the 1-year is 5% and 2-year rate is 8%. How would use this info to decide whether to invest in this project or not. 5. Investment case - 50 points > Imagine you are an Asset Manager, and you are tasked with producing a valuation/buy case for a FTSE 100 company for your investors. > Choose a company from the FTSE100 Index and write a 2,500-3,000-word investment case which contains the following: o A description and analysis of the business, its business sector, peer group and competitors. o Its geographical position and geopolitical strengths or vulnerability. o Detail your valuation of the company. Include analysis of the revenue profile, earnings, balance sheet, cashflow, capital allocation, management statistics, product range, DCF/Relative valuation etc. o Explain why you would buy this company. o Include graphics, technical analysis or other, to support the investment case. o Explain the corporate risks and how these could be mitigated.See Answer
Q2: There is two parts too chapter 7 First partis here Second part will be in next order Part one haves 76 questions in total Part one 76 due feb 14th 2 pm EST TIME Chapter 07: Assignment - Asset Pricing Models 1. Problem 7-01 BE Problem 7-01 Assume that you expect the economy's rate of inflation to be 2 percent, giving an RFR of 6 percent and a market return (RM) of 13 percent. a. Choose the correct SML graph under these assumptions. The correct graph is-Select- ✓ A. B. eBook B. C. -Select- graph A graph B Rate of Return graph C graph D 0.22 0.21 0.18 0.16- 0.14 0.12 0.1 0.08- RERa 0.06 0.04 0.02 Chapter 07: Assignment - Asset Pricing Models 0.04 + 0.02 Rate of Return RF Ra 0.22 0.2 0.18- 0.16- 0.14 0.12 0.11 0.08 0.06 0.04- 0.02 Security market Line Data of Daturn t SMLa Security market Line Systematic Risk (Beta) Security market Line SMLa Security market Line Systematic Risk (Beta) Systematic Risk (Beta)) Chapter 07: Assignment - Asset Pricing Models D. C. D. A Rate of Return RF Ra Chapter 07: Assignment - Asset Pricing Models Rate of Returni RF Ra 0.22 0.2 0.18 0.16 0.14 0.12 0.14 0.08 0.06 0.04 0.22+ 0.2 0.18+ 0.16+ 0.14 0.12 0.1- 0.08 0.06+ 0.04 0.02 0.02 I I Security market Line Security market Line Security market Line SMLa 1 SMLa Security market Line Systematic Risk (Beta) Systematic Risk (Beta) Systematic Risk (Beta) b. Subsequently, you expect the rate of inflation to increase from 2 percent to 4 percent. What effect would this have on the RFR and the RM? A change in risk-free rate, with other things being equal, would result in a new SMLь, which would intercept with the -Select- ✓axis at the new risk-free rate and -Select- parallel to the original SMLa. -Select- vertical horizontal Choose the correct SML graph. The correct graph is-Select- ✓ Systematic Risk (Beta) ✓ be Chapter 07: Assignment - Asset Pricing Models 0.12 -0.1 0.08 0.06+ 0.04 + 0.02 A. RFRa Systematic Risk (Beta) b. Subsequently, you expect the rate of inflation to increase from 2 percent to 4 percent. What effect would this have on the RFR and the RM? A change in risk-free rate, with other things being equal, would result in a new SML, which would intercept with the -Select- ✓axis at the new risk-free rate and -Select- parallel to the original SMLa. -Select- would would not Choose the correct SML graph. The correct graph is -Select- Rate of Return turn Chapter 07: Assignment - Asset Pricing Models A. The correct graph is -Select- ✓ -Select graph A graph B Rate of Return graph C graph D Systematic Risk (Beta) b. Subsequently, you expect the rate of inflation to increase from 2 percent to 4 percent. What effect would this have on the RFR and the RM? A change in risk-free rate, with other things being equal, would result in a new SML, which would intercept with the -Select- ✓axis at the new risk-free rate and -Select- ✓ be parallel to the original SMLa. Choose the correct SML graph. RFRb RFRA 0.22 0.21 0.18 0.16 0.14 0.12 0.14 0.08 0.06+ I 0.04 Security market Line 0.02 Security market Line 1 SMLb SMLa ✓ be Systematic Risk (Beta)) X Chapter 07: Assignment - Asset Pricing Models B. Rate of Return I C. RFRb RFR₂ 0.22 0.2 0.18 0.16 0.14 0.121 0.1 0.08 0.06 0.04 0.02 Chapter 07: Assignment - Asset Pricing Models Rate of Return I 0.221 -0.2 0.18+ 0.16 RFRb=RFRa 0.14 0.12+ 0.1- -0.08 Security market Line 0.06+ 0.04+ 0.02- SMLb SMLa Security market Line SMLb SMLa Systematic Risk (Beta)) Systematic Risk (Beta) Systematic Risk (Beta) Systematic Risk (Beta)See Answer
Q3:13. You observe the yields of the Treasury securities in the following table (all yields are shown on a bond-equivalent basis). Yield to Maturity (%) 5.25 5.50 5.75 6.00 6.25 6.50 6.75 7.00 7.25 7.50 7.75 8.00 8.25 8.50 8.75 9.00 9.25 9.50 9.75 10.00 Year 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 All the securities maturing from 1.5 years on are selling at par. The 0.5- and 1.0-year securities are zero-coupon instruments. a. Calculate the missing spot rates. b. What should the price of a 6% 6-year Treasury security be? c. What is the 6-month forward rate starting in the sixth year? Spot Rate (%) 5.25 5.50 5.76 ? ? ? ? ? ? ? 7.97 8.27 8.59 8.92 9.25 9.61 9.97 10.36 10.77 11.20See Answer
Q4:They Dong (ook Of Emp 5. In the May 29, 1992, Weekly Market Update published by Goldman, Sachs & Co., the following information was reported in an exhibit for high-grade, tax-exempt securities as of the close of business Thursday, May 28, 1992: cause Maturity (years) 1 3 5 10 30 a. What is meant by a tax-exempt security? b. What is meant by high-grade issue? Yield (%) 3.20 4.65 5.10 5.80 6.50 c. Why is the yield on a tax-exempt security less than the yield on a Treasury security of the same maturity? d. What is the equivalent taxable yield? e. Also reported in the same issue of the Goldman, Sachs report is information on intramarket yield spreads. What are these? Yield (%) as a Percentage of Treasury Yield 76.5 80.4 76.4 78.7 82.5See Answer
Q5:2. The yield spread between two corporate bond issues reflects more than just differences in their credit risks. What other factors would the yield spread reflect?See Answer
Q6:1. The following are U.S. Treasury benchmarks available on December 31, 2007: On the same day, the following trades were executed: Based on the above, complete the following table: Time Warner Cable Inc. McCormick & Co. Inc. Goldman Sachs Group Inc. Issue Issuer TWC 6.55 05/01/2037 MKC 5.75 12/15/2017 GS 5.45 11/01/2012 US/T 3.125 11/30/2009 US/T 3.375 11/30/2012 US/T 4.25 11/15/2017 US/T 4.75 02/15/2037 Yield (%) 6.373 5.685 4.773 Treasury Benchmark Issue 3.133 3.507 4.096 4.518 TWC 6.55 05/01/2037 MKC 5.75 12/15/2017 GS 5.45 11/01/2012 Benchmark Spread (basis points) Yield (%) 6.373 5.685 4.773 Relative Yield Spread GSee Answer
Q7:2. Computer assignment: • Using the spreadsheet "homework1.xls" calculate the following: 1. actual price change for yield/interest rate changes ranging from -7% to +6.5%. 2. estimated price change from duration. 3. estimated price change from convexity. 4. plot all three on the same graph. • The first spreadsheet for a 10-year bullet bond making 20 semiannual coupon pay- ments has been done for you. The formulas are all in the spreadsheet. - Specifics: 10-year, 14% coupon bond with semiannual coupon payments, FV=$10,000 and yield-to-maturity of 14% (i.e., at par). • The second spreadsheet for a 10-year barbell bond is for you to complete. There are many fewer cashflows here since the barbell bond only pays coupons in year 1 (periods 1 and 2) and year 10 (periods 19 and 20). - Specifics: 10-year bond with coupon of 60% in year 1 and 60% in year 10, with no coupon payments in between (e.g., a barbell), FV=$10,000 and yield-to-maturity of 9.8%. • I have done most of the work for you. The charts/graphs will automatically be updated and the interest rate changes are provided. Also, the forumulas from the bullet bond spreadsheet can be used for the barbell bond, BUT make sure you use the appropriate cash flows for the barbell bond. This exercise will give you practice on computing duration and convexity and using it to estimate price changes of bonds. (hint: to be sure you are calculating things correctly, the duration on the barbell bond should be about the same as the bullet bond). To be turned in: 1. A copy of the spreadsheet and graph for the barbell bond. 2. Answer to the following question: Why does the barbell bond have a higher price than the bullet bond when they have roughly the same duration (i.e., same senstivity to the level of the interest rate)? For fun: Try to play around with the numbers in the spreadsheets to give yourself practice and intuition for bond pricing and sensitivity to interest rate changes and yields./nSee Answer
Q8:a. Present the Capital Asset Pricing Model (CAPM). Estimate the CAPM model using the data for the asset you have chosen. Report and discuss the results and whether you believe the estimate you have obtained is appropriate. (20 marks) b. Test the hypothesis that the asset is in equilibrium. Present the testing procedure, report the result of the test, and discuss the decision you take. Assume you hold a portfolio. Would you buy the asset under examination if your aim is to make the portfolio you hold risk neutral? Discuss. (20 marks) c. Present and discuss the Fama and French (1993) three factors model. Estimate the Fama and French (1993) three factors model using the data and discuss the results. (20 marks) d. Compare the results for model under question (c) with those from the model under question (a). What is the preferred model, and why? Discuss. (20 marks) e. How do you deal with the presence of an important event in the data (for example, a financial crisis)? Discuss. Use the data to describe your approach. (20 marks)See Answer
Q9: Company: Royal Bank of Canada Capital Asset Pricing Model (CAPM) Format: PDF version of Excel spreadsheet for CAPM (see link above) Grading Rubric: Your submission will be marked by your peers based on the following categories (equal weighting for each): Data (inclusion and accuracy), Sources (provided and clear), Calculations (properly done), Documentation (formulas and sample calculations provided for the calculations), Graph (properly oriented, labelled, and includes best-fit line) and Presentation. In this section you will calculate the firm's expected rate of return using the capital asset pricing model. You will first need to calculate your company's beta and then use that in the CAPM formula to get the expected rate of return. Data Required: Monthly closing stock prices (in Canadian dollars) for your company for the period January 1, 2020 to December 31, 2023. A good source is Yahoo Finance Canada, as it allows you to search and download the entire period at once. You can specify the date range, choose monthly prices, and download the information Use the Close price rather than the Adjusted Close price. NOTE: Yahoo Finance provides Open-High-Low-Close prices for each month and lists the date as the first trading day of the month. The closing price is from the last trading day of the month. Monthly closing prices for the S&P/TSX Composite Index for the period January 1, 2020 to December 31, 2023. A good source is Yahoo Finance Canada. The company symbol will be ^GSPTSE. You can also click on S&P/TSX to get to the page. Yahoo Finance may be missing some of the data when you download monthly prices. You will need to look at the daily prices to fill in the missing values. The yield on a 3-month Canada Treasury Bill for December 29, 2023. You will find this at the Bank of Canada. From the dropdown menu under "Statistics", choose "interest Rates", then choose "Treasury Bill Yields". Click on "Look up the past ten years of data" for these series. Select your date and choose Treasury Bills, 3 Month, Daily. You will be given the yield as a percentage. Calculations: Calculate each of the monthly returns for your stock over the 4 years from January 2020 to December 2023 (i.e., percentage change in price from month end to month end). Calculate each of the monthly returns for the S&P/TSX Composite Index over the same 4-year period. Create a scatter plot using Excel that shows the returns on your company's stock and the returns on the market index. Each point will represent one month (see Figure 12.2 in your text). Plot the characteristic line on the graph (the trendline). Make sure to label the axes. Calculate the standard deviation of your company's returns, the standard deviation of S&P/TSX returns, and the correlation coefficient of S&P/TSX and company returns. Calculate beta as the slope of the characteristic line on your graph (see a sample spreadsheet in section 12.1 of your text). Using the value of beta that you calculated, the December 29, 2023 yield on a three-month treasury bill for the risk-free rate, and 7 percent as the market risk premium (the average market risk premium over the last 90 years), calculate the expected rate of return based on the capital asset pricing model. Report the data and results for these two sets of calculations on the CAPM Template. Make sure you include sources for your data and show the formulas you used (using variable names) as well as the calculations (using your numbers - note for the return calculation you only need to show one sample calculation). You should show the excel formulas that you used for standard deviation, correlation, and beta. Include a graph of your data and make sure you label the axes. You will have to convert your document to Portable Document Format (PDF) before you submit it to PEAR (a screenshot is not acceptable). This ensures that everyone will be able to access and read it. Make sure you check your file after the conversion - the conversion has the same effect as printing the document and the results are not always what you expect. You may find that you have to go back and adjust your formatting. Make sure you check the formatting before you submit to PEAR. It is your responsibility to make sure that you have properly uploaded the correct file to PEAR. If you are having technical difficulties, you will need to contact CourseLink support. Weighted Average Cost of Capital (WACC) Format: PDF version of Excel spreadsheet for WACC (see link above) In this section you will calculate a return on debt for your firm and use that with the expected returns on equity that you calculated in the DDM and CAPM parts above to calculate a weighted average cost of capital. You will get three different values, one for each method you used to calculate the cost of equity. Data Required: Most recently available annual financial statement information: Long-Term Debt and Number of Shares Outstanding. These can be found at Yahoo Finance Canada, the Toronto Stock Exchange, SEDAR, or on the company's website. Your company's debt rating for Senior Debt. Sometimes this will be listed on the company's website. Some other sites to check are Moody's (moodys.com), Fitch Ratings (fitchratings.com), or S&P Global (standardandpoors.com). These sites may require registration, but they are free. A google search may also turn up the debt rating. The yield on a 10-year Government of Canada Bond for December 29, 2023. You will find this at the Bank of Canada. The closing stock price for your company on the date of the annual report. Calculations: To get the yield on the firm's debt, assume that the credit spread (i.e., the extra yield over the equivalent term government bond) is as given in Ratings, Interest Coverage Ratios, and Default Spread data Link opens in a new window. Add the appropriate spread for your company's debt rating to the yield on 10-year Government of Canada bonds on December 29, 2023. If you cannot find a debt rating for your company, you can assume that it has a BBB rating. Calculate the values of debt, equity, and the firm. Use the value of long-term debt from the most recent statement of financial position for the value of debt. Calculate the value of equity using the number of shares outstanding and the actual price from the date of the most recent annual report. The value of the firm will be the sum of the debt and equity (ignore any preferred stock). Also calculate the proportions of debt and equity to make it easier to check your WACC calculations. Calculate the weighted average cost of capital (WACC) for your firm three ways. Once using the expected rate of return on equity from the constant-growth dividend discount model - historical growth, Once using the expected rate of return on equity from the constant-growth dividend discount model - sustainable growth, and Once using the expected rate of return on equity from the capital asset pricing model (CAPM). Use the book value of long-term debt and the market value of equity and assume your company has a 26 percent corporate tax rate. Report the data and results for these two sets of calculations on the WACC Template. Make sure you include sources for your data and show the formulas you used (using variable names) as well as the calculations (using your numbers). Also make sure that you report the values for expected rate of return on equity that you determined from the previous parts of this project. You will have to convert your document to Portable Document Format (PDF) before you submit it to PEAR (a screenshot is not acceptable). This ensures that everyone will be able to access and read it. Make sure you check your file after the conversion - the conversion has the same effect as printing the document and the results are not always what you expect. You may find that you have to go back and adjust your formatting. Make sure you check the formatting before you submit to PEAR. It is your responsibility to make sure you have properly uploaded the correct file to PEAR. If you are having technical difficulties, you will need to contact CourseLink support. Summary Memo Format: PDF document Grading Rubric: Your memo will be marked by your peers based on the following categories: Content (does it include the 3 rates of return, 3 WACC values, and a recommended return), Purpose (does it explain why this work has been done), Explanation (does it explain why the particular return has been chosen), and Writing (well-organized, clear, free of grammar and spelling errors). Write a one-page (at most) memo to your boss reporting your findings. Include an opening segment that states the problem and purpose of your memo (your boss receives lots of memos and needs to know what this one is about). Make sure you state the name of the company you have analyzed and its industry. Provide the three expected rates of return that you calculated for your company. Provide the three weighted-average costs of capital that you calculated. Provide a recommendation for what discount rate your company should use in evaluating their proposed investment. Provide a brief explanation of why you are recommending that rate. There is no correct answer to what you should recommend for a discount rate. You should, however, provide a good explanation for why you are recommending the rate you have chosen.See Answer
Q10:5. (20') You observe the following Treasury yields (all yields are shown on a bond-equivalent basis): Yield to Maturity Spot Rate 10.00% Year 0.5 10% 1 9.75% 9.75% 1.5 9.50% 9.48% 2 9.25% ? All securities from 1.5 years on are selling at par. The 0.5-and 1.0-year securities are zero- coupon instruments. a) Calculate the missing spot rate. b) If the yield curve deviates a lot from the theoretical spot rate that we calculated; for example, the 2-year treasury note with 9.25% coupon has a higher yield than a package of zero-coupon instruments, what will happen?See Answer
Q11:3. (20') Suppose that an investor with a 4-year investment horizon is considering purchasing a 10-year 5% coupon bond selling at par. The investor expects that she can reinvest the coupon payments at an annual interest rate of 8% and that at the end of the investment horizon 6-year bonds will be selling to offer a yield to maturity of 11%. What is the total return for this bond?See Answer
Q12:1. (20') Suppose the following information is quoted for a hypothetical Treasury security: Issue 5% 4/15/2030-B Bid 120.20 Ask 27 Change 6 Yield ? a. What is the bid price per $100 of par value? b. If an investor wanted to purchase $100,000 of par value of this Treasury security, what is the clean price? c. What is the ask price per $100 of par value? d. If an investor wanted to purchase $100,000 of par value of this Treasury security, what is the clean price? e. What does the "Change" of 6 mean? f. What does the "Yield" column mean? g. Suppose that instead of a bid of 120.20 it is 120.20+. What would be the clean price per $100 of par value?See Answer
Q13:3. (20') Suppose that an investor with a 4-year investment horizon is considering purchasing a 10-year 5% coupon bond selling at par. The investor expects that she can reinvest the coupon payments at an annual interest rate of 8% and that at the end of the investment horizon 6-year bonds will be selling to offer a yield to maturity of 11%. What is the total return for this bond?See Answer
Q14:2. (10') Suppose a bond is purchased with a settlement date of June 30 and the next coupon payment is on September 30. The par amount purchased on the bond $100,000, and its annual coupon rate is 6% paid semiannually. a. What is the accrued interest using the 30/360 day count convention? b. What is the accrued interest using the actual/actual day count convention?See Answer
Q15:6. The bid and ask yields for a Treasury bill were quoted by a dealer as 5.91% and 5.89%, respectively. Shouldn't the bid yield be less than the ask yield because the bid yield indicates how much the dealer is willing to pay and the ask yield is what the dealer is willing to sell the Treasury bill for? 7. In a Treasury auction, what is meant bySee Answer
Q16:5. Suppose that the price of a Treasury bill with 90 days to maturity and a $1 million face value is $980,000. What is the yield on a bank discount basis?See Answer
Q17:Assessment 3: Research Report - Case Study Overview The assessment will involve a case study pertaining to different financial markets and instruments. Students will be required to prepare a comprehensive Investment Strategy Research Report for the client. Learning Outcomes The targeted Course Learning Outcomes for this assessment are: • CLO1: Identify the nature and key components of financial systems domestically and globally to apply in diverse contexts. CLO2: Identify the nature, role and determinants of the structure and level of interest rates in economics and financial contexts. CLO3: Analyse the characteristics and functions of the main financial intermediaries and the role of regulatory bodies in in financial systems in a global context. • CLO4: Assess the operations of the foreign exchange market including the nature and determinants of exchange rates and relevant investment strategies. CLO5: Explore the main features and theorems of capital markets, institutions and securities including debt securities, equity and derivative products. Assessment details The assessment is a scenario-based research analysis report. You are required to conduct independent research and write a 3000 words (-/+10%) report. This assessment includes all the content covered in Topics 1 to 10. The assessment is worth a total of 50 marks and accounts for 50% of the total grade for this course. Formatting The report must be presented in standard report structure. The report must be presented and submitted in Microsoft Word document. You may use hand-drawn diagrams where applicable. Include the image of the diagram - use balanced resolution so the information in the image is Guidelines for text formatting:/nFinal Assessment - Research Report Case Study Background: As a financial advisor, you have the responsibility to educate and empower clients with a deep understanding of market and economic systems to remove the mystery and fear associated with investing. This approach fosters confidence and informed decision-making, enabling clients to invest wisely regardless of external economic conditions. Your task is to prepare a comprehensive Investment Strategy Report for your new client, Mr. Vien. This report should align with Mr. Vien's client profile, including his wealth, risk preferences, and investment objectives. Report Requirement: Your report should be well-supported with examples and credible sources, including peer- reviewed journal articles, papers, books, industry reports, institutional reports, regulatory standards, and official materials. Do not rely solely on general websites for information. A minimum of 8 references is expected. Detailed instructions for each section: → Executive Summary: ● Provide a brief summary of the key findings, recommendations, and the client's profile and objectives. Introduction: Offer context for the report and its purpose. * Section 1: Market conditions and Monetary Policy Discuss current market conditions in Australia and globally that may impact investment decisions. Ch 8 Co/nRMIT Classification: Trusted → Section 2: Asset Classes Discussion Select four distinct asset classes that you are knowledgeable about and conduct a comprehensive analysis of their defining characteristics, associated risks, potential returns, and provide illustrative examples for each asset class. You are encouraged to utilise diagrams, charts, tables and figures in the discussion. • Based on Mr. Vien's profile and risk preference, market conditions, and available asset classes, recommend at least four additional suitable assets for his portfolio. Explain to Mr. Vien regarding pros and cons of the right issue, assuming he owns 1000 Tesha shares and below scenario: In 2023, Tesha, Inc. conducted a rights issue to raise additional capital for its growth and expansion plans. Shareholders were given the opportunity to purchase additional Tesha shares at a discounted price on a ratio of 1:5. Tesha's stock price before the rights issue announcement was approximately $800 per share. The discount price is $500 per share. Assuming Tesha has 1,000,000 shares and all shareholders exercise their rights. Section 3: Funds Under Management • Considering Mr. Vien's preference for cost-effective index funds and his pursuit of promising returns, provide an overview of funds in his portfolio. • Investigate and evaluate the historical performance, risk, and return of these funds compared to benchmark indexes. • Address potential overconfidence bias in Mr. Vien and propose a diversified fund selection strategy. • Introduce one or two new funds aligned with Mr. Vien's needs and your expertise. • Explain fund measurement by calculating the coefficient of variation and Sharpe ratio using the provided data and provide an interpretation of calculations. Ch 8 Co/n→ Section 4: Hedging Using Derivatives Discuss the potential use of derivatives (e.g., options or futures) to hedge Mr. Vien's portfolio against adverse market movements. Explain the benefits and risks associated with derivatives-based hedging strategies. Assess the alignment of these strategies with Mr. Vien's risk tolerance and overall investment plan. ● → Conclusions: Summarize key takeaways from the report. Emphasise the importance of informed decision- making in achieving Mr. Vien's investment objectives. > Reference List: Follow the RMIT Harvard referencing style for all citations and references.See Answer
Q18:Part II: Complete Michael's 2023 Form 4562 using the information in #1-5 above, Scenario 1 in Part 1. There are sample form 4562s included in your Chapter 8 lecture notes in Blackboard from Examples 18, 20 and 26 and also from homework 40 (which you can see after the homework deadline is past) so you can see how the form should look. There is also a sample form 4562 in Chapter 8 on page 8-26 as part of Example 40. Go to www.irs.gov and search for Form 4562. If the 2023 final form version is not available, use a draft form for the current year which you can find in the Tax Cases folder in BB or at this link: (https://apps.irs.gov/app/picklist/list/draftTaxForms.html). You must save the form first to your computer. Then fill it in, re-save with your changes and upload along with this worksheet to the dropbox. It must be a 2023 tax form, draft or final. If you prefer, you can write in the amounts and scan or take a picture of the completed tax form, like you do in your tax cases.See Answer
Q19:7. Revised scenario: Same asset acquisition date, same amount, but this time Michael asks you to compute the maximum depreciation she can take without electing Section 179 at all, i.e. how can she deduct the most depreciation without using Section 179. Hint - not ADS or Straight-line. Remember the ORDERING rules! a. Show the calculation required to achieve the highest-possible depreciation deduction for 2023 without using Section 179. Label each calculation and describe the depreciation method used. b. Show the calculation of 2024 (year 2) depreciation assuming same sale scenario given in #6. c. Show the calculation of adjusted basis at sale date after calculation in 7b. d. Show the calculation of Michael's gain or loss, again, using the same sale proceeds given in #6.See Answer
Q20:5. What is the total depreciation deduction, including Section 179, per Form 4562 Line 22, for 2023?See Answer

TutorBin Testimonials

I found TutorBin Financial Assets And Markets homework help when I was struggling with complex concepts. Experts provided step-wise explanations and examples to help me understand concepts clearly.

Rick Jordon

TutorBin experts resolve your doubts without making you wait for long. Their experts are responsive & available 24/7 whenever you need Financial Assets And Markets subject guidance.

Andrea Jacobs

I trust TutorBin for assisting me in completing Financial Assets And Markets assignments with quality and 100% accuracy. Experts are polite, listen to my problems, and have extensive experience in their domain.

Lilian King

I got my Financial Assets And Markets homework done on time. My assignment is proofread and edited by professionals. Got zero plagiarism as experts developed my assignment from scratch. Feel relieved and super excited.

Joey Dip

Popular Subjects for financial assets and markets

You can get the best rated step-by-step problem explanations from 65000+ expert tutors by ordering TutorBin financial assets and markets homework help.

TutorBin helping students around the globe

TutorBin believes that distance should never be a barrier to learning. Over 500000+ orders and 100000+ happy customers explain TutorBin has become the name that keeps learning fun in the UK, USA, Canada, Australia, Singapore, and UAE.