# FINC3017 Investments and Portfolio Management

FINC3017 Investments and Portfolio Management Assignment 1: Asset Allocation and Portfolio Construction

Due: 11:59PM, 3 April 2022

Word limit: 1500, excluding tables and figures

## Objective

You are hired as an investment consultant by a hedge fund that focuses on the following six US stocks: Apple (ticker AAPL), Ford Motors (ticker F), Walter Disney (ticker DIS), Ralph Lauren (ticker RL), Microsoft (ticker MSFT), and Citigroup (ticker C). Your task is to submit a professional report for your manager which addresses the following investment issues. Your analysis is based on implementing the Markowitz approach and monthly returns of the six stocks over the sample period from January 2010 to December 2021, as contained in the spreadsheet ‘Assignment1_data’.

1. Come up with a name for the fund and clearly state it at the beginning of the report
2. Discuss the risk return characteristics of the six stocks. Generate a table that reports mean, standard deviation, skewness, maximum drawdown, Sharpe ratio, and variance and covariance matrix of these six stocks. You also need to prepare a cumulative return plot.
3. Plot and describe the investment opportunity set and efficient frontier of the six stocks with and without the risk-free asset. Clearly identify the weight of each stock in the tangency portfolio as well as the expected return and standard deviation of the tangency portfolio. Assume the risk-free rate is 1% per annum.
4. Investor Tom George wants to invest only in Apple because many stock analysts recommended it. You explain to the investor that he will be better off if he creates a portfolio of the six stocks rather than investing in only Apple.
5. There are two individual investors, Kendall Lee and Morgan Number who are interested

in investing in this fund. Both investors’ utility is represented by:

𝑈 = 𝐸(𝑅)

− 1 𝐴σ2 .

2

Kendall has a risk aversion coefficient (𝐴) of 6 and Morgan has a risk aversion coefficient

of 10. Suppose each investor has \$1 million USD to invest, calculate the portfolio allocation (in dollar amount) to the six stocks and risk-free asset you would recommend to the two investors to maximise their utilities and summarise the expected returns, standard deviations, and Sharpe ratios of these recommended portfolios. Are these portfolios still attainable if investors are not allowed to take short positions?

• Another investor Amy Zhao is also interested in the fund. However, she is worried about the fact that parameters are all estimated from historical data. Provide a response to Amy’s concern.

• Express returns, standard deviations, and Sharpe ratios in annual term.
• If using Solver, please set the initial weights to be equal weights when conducting each optimisation.
• Address the requirements of each question clearly. In preparing your report, it is recommended you consider how charts, tables, subheadings, and dot points can be used to enhance the way you present your findings.
• The data provided in this report is adapted from real stock market data. You should only use the data provided to you in completing this report (you are not required to gather any additional data). Further, ignore any potential transaction costs, fees, and taxes in determining your responses.
• Reports will be checked by Turnitin and actions will be taken if academic dishonesty or plagiarism is suspected.

## Marking

Marks will be awarded for correct quantitative analysis, the clarity of your discussion, the structure of your report, and how you present your findings (the report, tables, and figures should be professionally formatted).

## Submission

You need to prepare two files for submission in Canvas.

1. a written report that contains your results and discussions. Submit your report as a pdf document via the ‘Report 1’ link in Canvas
2. your workings. Submit your workings as an Excel spreadsheet via ‘Report 1 – Supporting workings’ link in Canvas (or code if using an alternative optimization program). Your workings will not be directly graded.

Get expert help for Investments and Portfolio Management and many more. 24X7 help, plag free solution. Order online now!

Universal Assignment (March 22, 2023) FINC3017 Investments and Portfolio Management. Retrieved from https://universalassignment.com/finc3017-investments-and-portfolio-management/.
"FINC3017 Investments and Portfolio Management." Universal Assignment - March 22, 2023, https://universalassignment.com/finc3017-investments-and-portfolio-management/
Universal Assignment March 18, 2023 FINC3017 Investments and Portfolio Management., viewed March 22, 2023,<https://universalassignment.com/finc3017-investments-and-portfolio-management/>
Universal Assignment - FINC3017 Investments and Portfolio Management. [Internet]. [Accessed March 22, 2023]. Available from: https://universalassignment.com/finc3017-investments-and-portfolio-management/
"FINC3017 Investments and Portfolio Management." Universal Assignment - Accessed March 22, 2023. https://universalassignment.com/finc3017-investments-and-portfolio-management/
"FINC3017 Investments and Portfolio Management." Universal Assignment [Online]. Available: https://universalassignment.com/finc3017-investments-and-portfolio-management/. [Accessed: March 22, 2023]

## Please note along with our service, we will provide you with the following deliverables:

Please do not hesitate to put forward any queries regarding the service provision.

We look forward to having you on board with us.

# Get 90%* Discount on Assignment Help

### Most Frequent Questions & Answers

Universal Assignment Services is the best place to get help in your all kind of assignment help. We have 172+ experts available, who can help you to get HD+ grades. We also provide Free Plag report, Free Revisions,Best Price in the industry guaranteed.

We provide all kinds of assignmednt help, Report writing, Essay Writing, Dissertations, Thesis writing, Research Proposal, Research Report, Home work help, Question Answers help, Case studies, mathematical and Statistical tasks, Website development, Android application, Resume/CV writing, SOP(Statement of Purpose) Writing, Blog/Article, Poster making and so on.

We are available round the clock, 24X7, 365 days. You can appach us to our Whatsapp number +1 (613)778 8542 or email to info@universalassignment.com . We provide Free revision policy, if you need and revisions to be done on the task, we will do the same for you as soon as possible.

We provide services mainly to all major institutes and Universities in Australia, Canada, China, Malaysia, India, South Africa, New Zealand, Singapore, the United Arab Emirates, the United Kingdom, and the United States.

We provide lucrative discounts from 28% to 70% as per the wordcount, Technicality, Deadline and the number of your previous assignments done with us.

After your assignment request our team will check and update you the best suitable service for you alongwith the charges for the task. After confirmation and payment team will start the work and provide the task as per the deadline.

Yes, we will provide Plagirism free task and a free turnitin report along with the task without any extra cost.

No, if the main requirement is same, you don’t have to pay any additional amount. But it there is a additional requirement, then you have to pay the balance amount in order to get the revised solution.

The Fees are as minimum as \$10 per page(1 page=250 words) and in case of a big task, we provide huge discounts.

We accept all the major Credit and Debit Cards for the payment. We do accept Paypal also.

### The Global Economy Assignment help

Unit Name: The Global Economy Answer all the questions below. Question 1 (this question has three parts, (a), (b) & (c)) Country A Country B phones computers phones computers 1000 0 600 0 500 200 400 300 0 400 0 800 (i) Can you tell which country has a comparative

### MAE 203 The Global Economy Estimated Reading

DEAKIN UNIVERSITY FACULTY OF BUSINESS AND LAW Department of Economics FINAL EXAMINATION TRIMESTER 1, 2021 Unit Code: MAE 203 Unit Name: The Global Economy Estimated Reading Time: 15 minutes Estimated Working Time: 2 hours Estimated time for preparing and submitting your final responses to CloudDeakin Dropbox: 45 minutes This is

### Property Asset Finance Assignment

QUESTION 1 (This question has three parts, (a) , (b) and (c) ) Discuss the following questions in detail: QUESTION 2 (This question has three parts, (a), (b) and (c)) QUESTION 3 (This question has three parts, (a), (b) and (c)) Abacus Property Group, a diversified property group listed on

COURSE:                                 BACHELOR OF ACCOUNTING UNIT:                                       ICT 201 BUSINESS INFORMATION SYSTEMS ASSESSMENT TASK:                                    ASSIGNMENT 2 ASSESSMENT MARKS:            30% DUE DATE:                              Week 12 ASSESSMENT INSTRUCTIONS The second assignment provides an opportunity to applied knowledge of the concept of data and information and business information systems for the purpose of strategic and operational

### Critically evaluate the auditors’ role in detecting financial statement frauds

Semester April 2021 Module Code ACC4304 Module Title Auditing Coursework Structure Essay (1,800 words) Assignment Weighting 40% Assignment Title Critically evaluate the auditors’ role in detecting financial statement frauds. Coursework Submission Deadline Date: Week 13 of April 2021 Session Time: 5pmMethod: SafeAssign via Blackboard Assessment Criteria Learning Outcomes: Knowledge and

### Computer Security Vulnerabilities and Countermeasures

Computer Security (CSI1101) Case Study:                  Computer Security Vulnerabilities and Countermeasures Weighting:                    40% of the final mark of the unit Due Date:                     Check Blackboard under Assessment à Assignments à Assessment Overview Word count:                 3500 words excluding the Title Page, Table of Contents, Reference list, and Appendices (if you wish to add).

### System Analysis & Design

To make this assignment (and thus the module) more relevant and interesting for you, rather than give all students the same fixed (and artificial) case study, you will select your own realworld case study and then apply the concepts and techniques you have learned from this module to that case

### CBOP3103 OBJECT ORIENTED APPROACH IN SOFTWARE DEVELOPMENT

_________________________________________________________________________ CBOP3103 OBJECT ORIENTED APPROACH IN SOFTWARE DEVELOPMENT PENDEKATAN BERORIENTASIKAN OBJEK DALAM PEMBANGUNAN PERISIAN MAY 2021 SPECIFIC INSTRUCTION / ARAHAN KHUSUS Jawab dalam BAHASA INGGERIS atau BAHASA MELAYU. Jumlah patah perkataan: 2500 – 3000 patah perkataan tidak termasuk rujukan. Hantar tugasan SEKALI sahaja dalam SATU fail. Tugasan ini dihantar secara

### Assignment 2: Case study – Template and tips

Assignment 2: Case study – Template and tips Contents Overview of the assignment………………………………………………………………………………… 2 Aim of the Case Study assignment…………………………………………………………………….. 2 Selecting a behaviour……………………………………………………………………………………… 2 Overview of structure…………………………………………………………………………………….. 3 General formatting notes………………………………………………………………………………… 3 Frequently Asked Questions…………………………………………………………………………….. 3 Assignment structure………………………………………………………………………………………… 5 HEADING: Reason for Referral………………………………………………………………………….. 5 HEADING: Assessment……………………………………………………………………………………. 5 SUBHEADING: Behaviour

### BUSM4741 Financial Analytics for Managerial Decisions

Graduate School of Business and Law — Course Code: BUSM4741 Subject Name: Financial Analytics for Managerial Decisions Assessment # 1: Reflective Exercises Assessment Type: Individual Reflections Word limit: 2,000 (+/– 10%)   Due date:     Weighting   Sunday of Week 3, 23:59 (Melbourne time)     20 %

### PROJ6004: Contracts and Procurement

ASSESSMENT BRIEF – Assessment 2 Subject Code and Title PROJ6004: Contracts and Procurement Assessment Assessment 2: Contracts and Procurement Review of the case study and associated Learning Resources, including detailed analysis of findings. Individual/Group Individual Report Length 2400 words Learning Outcomes Critically evaluate the risks associated with contract and procurement

### FINANCIAL MANAGEMENT (FM202B)

ASSIGNMENT 1: 2nd SEMESTER 2021 FINANCIAL MANAGEMENT (FM202B) Please note that this assignment consists of three sections, all of which should be completed. SECTION 1 Working capital [10] Extract from Shoprite Holdings group financial statements   Rm Rm   2020 2019 Revenue 83 430 79 711 Cost of sales –

### Research & Enquiry – Assignment Two

In what ways can an organisation increase an employee’s work motivation? 1.0 Introduction The main objective of human resource management is to ensure long term organisational performance by aiming for optimal employee productivity (Hanaysha & Majid, 2018). Employees are an organisation’s most valuable assets and managers are always looking for

### BBF308/03 International Financial Management Assignment

BBF308/03 International Financial Management Assignment 1 (50%) September 2021 Semester Instructions BBF308/03 ASSIGNMENT 1 Part 1 (100 marks) Answer ALL questions. QUESTION 1 (25 MARKS) QUESTION 2 (25 MARKS) Three friends Derek (Malaysia), Nook (Thailand) and Minori (Japan) decided to join an international competition of innovation product. The registration fee

### LAW203 Taxation Law

Course:                            Bachelor of Accounting Unit:                                LAW203 Taxation Law Assessment Task:                                        Task 2 – Individual Assignment Assessment Marks:                             30% or 30 marks Assessment task Type (1) When assessed – year, session and week Weighting (%        of total marks for unit) Cross reference to learning outcomes Case Study Assignment and Class Debate:

### FSC521: The Financial Services Industry

FSC521: The Financial Services Industry Learning outcomes This assignment assesses the following learning outcomes: Instructions Tasks Topic 1 Financial institutions and the tax system 2 The impact of natural disasters and change in the OCR 3 Financial markets and the impact of the business cycle 4 Regulators Continued next page

### FNS50320 Diploma of Finance and Mortgage Broking Management

UNIT  – FNSPRM613 Grow financial practices STUDENT INSTRUCTIONS This assessment and subsequent assessments in this module are all based on this Case Study Scenario below. You are to target your existing database and then do research on securing new business clients. Overview of assessment requirements in the whole module: Complete

### Manual Recording Case Study – Fast Pedallin Pty Ltd

Assessment Task 1: 25% Manual Recording Case Study – Fast Pedallin Pty Ltd READ THESE INSTRUCTIONS. THEY DETAIL HOW TO MAXIMISE YOUR RESULT. IMPORTANT:  Part A: Manual Recording To record transactions manually, you must use the Excel files provided via email. Handwritten work or Excel files other than the Excel

### Operating Systems Project

University at Albany Department of Computer Science CSI 500 Assigned: Tuesday, February 21tst, 2023 Due: Tuesday, March 21st by 11:59 PM. Submissions with 20% penalty will be accepted by Thursday, March 23rd, by 11:59 PM. Unlimited number of submissions is allowed. Purpose To develop a synchronous inter-process communication through the

### Corporate Sustainability – MGMT2001

Ecological Footprint Project and Pathway to Net Zero ASSIGNMENT BRIEF V2.0 This is an Individual Assignment Value: 35 marks Due date: 4:00pm Monday, 02 May 2022 Week 09 Submission: via Turnitin link on Wattle Return: 16 May 2022 Maximum length: 12 pages (1.5 line spacing, font, Times New Roman or

### TRIBUNAL PRACTICE AND PROCEDURE

ASSIGNMENT #2 – SUBMISSIONS Object of the Assignment In this assignment, you will prepare a written submission to the Licence Appeal Tribunal (“LAT”) relating to the issue of whether Suzie Stumble’s injuries arose from an “accident” as defined in the relevant Statutory Accident Benefits Schedule (“SABS”). Due Date and Value

### Micro Economics Short Answer Questions

Assessment Task: Short Answer Questions Submission Date and Time: 5th April 2022; 23:59PM (NSW time) Value (Weight): 20% of total assessment Word Length: 1500 words Assignment 1 Questions: (1)         (All Students – 18 Marks). The following table presents Jane’s marginal utility from consuming hotdogs (H) and cola drinks (C). She has only

### MK102 Global Food Markets

Institute of Agricultural Policy and Market Research Chair of Agricultural and Food Market Analysis TAKE-HOME ASSIGNMENT MK102 Global Food Markets (WiSe 2021-22) Student name:             **please fill in your name here** Student ID-number:     **please fill in your student ID here** Start time:                    Thursday, February 17, 2022 at 10:00 am (CET) End

### PRACTICE PROBLEM – E & T

Ayesha Khan is the daughter of Salman and Huma. Until they retired, Salman and Huma operated a successful business in Melbourne importing engineering components from Karachi. Thirty years ago, Salman and Huma’s accountant advised them that they should set up a discretionary trust for tax purposes, which they did. This

### The transborder challenge or threat

Your essay should be structured as follows: (excluding the reference list). o What are the main debates surrounding the causes of this challenge, which voices dominate in this debate, and why? This part of the essay involves: (a) identifying the main debates surrounding the causes of this challenge/threat, the key

### LWZ223 Property Law: Assessment One

Word Limit 2 000 words AGLC referencing and bibliography are required. Refer to rubric for marking guide. Relevant Unit Learning Outcomes for task, 1, 4, 5 and 6: advice on disputes in hypothetical problem and actual case law situations. Tip: Remember to support your response with law. This can be

### LAW5211 Constitutional Law Essay

LAW/CRI ASSESSMENT TASK SHEET – LAW5211 Assessment # 1 Assessment Name and description: Constitutional Law Essay Assessment purpose/scope and relevance:    The purpose of this assessment is to:    assess students’ ability to research issues of constitutional law; assess students’ ability to analyse and apply the results of that research

### SOC201A Mediation and Conflict Management

Assessment Brief   Program   Bachelor of Applied Social Science   Subject   Mediation and Conflict Management   Subject code   SOC201A   Name of assessment   Assessment 3: Case Study   Length   2000 words   Learning outcomes addressed by this assessment:   A, B, C, D, E,

### THE GEOGRAPHY OF MARKET DEMAND

This assignment addresses market demand in census tract neighbourhoods in the Toronto Census Metropolitan Area (CMA). You will first collect and present demographic data on two census tracts. Then you will compare and contrast the two census tract neighbourhoods. Finally, you will briefly identify census variables from your own neighbourhood.