Economics of Money ,Banking and Finance
Instructions for assessment
In a maximum of 3000 words.
Investment portfolio exercise:
You have £1,000,000 to invest. You should study the markets and the available financial products and then select a portfolio of between 5 and 10 individual products/assets. The products that you include in the portfolio may be fixed income, equity, ETF or cash in any combination, although all must be listed in a publication where they can be tracked and measured.
The portfolio should be monitored, analyzed, re-balanced and reported upon. The report should contain an analysis of your chosen investments with a detailed reasoning for your selection. You are expected to consider all the risk factors involved and also to give a brief assessment of your expectations.
Note that this is an assessment of your ability to thoughtfully construct and justify a portfolio and your ability to report and analyse its performance professionally. You should do external research and explain your answers.
Word limit: 3000
The actual performance of the portfolio will not be a factor in the marking of your work i.e. you will not get more marks for a portfolio which makes more money.
Instructions for setting initial assessment portfolio during reading week:
Identify assets allocation structure of your portfolio based on the principles in chapter 28 .
Examine seminar materials for ideas on how to choose fixed income and equity instruments. Consider Modern portfolio theory and Capital assets Pricing Model reasons when choosing stocks and bonds
Create portfolio using www.portfoliovisualizer.com (https://www.portfoliovisualizer.com/optimize-portfolio )during reading week. The portfolio should consist with bond, ETF, stocks, cash, cash equivalent instruments