09 Jul Subject Name: Investment Management

Word Count: 3000

Assignment Objective:
The goal in this Assignment is to assess the learners with an advanced understanding of how financial markets function and how assets are priced and traded. This paper covers fundamental concepts related to the portfolio decisions of individual and institutional investors. Using the concept of risk-return trade-off as a unifying theme, it discusses the techniques and implications of efficient portfolio diversification and the allocation of assets among different securities. The valuation of equity and fixed income securities are covered in some depth.
You will need to:
You are requested by the CEO of the listed company to be the Director-Consultant in Investment and conduct a completed & detailed report via r a study of financial markets and the types of securities traded on which the company is trading. This report will help the management team of the listed company to develop a conceptual framework and analytical tools and be able to apply them to particular investments and investment strategies selected from a wide array of companies, securities and investment vehicles.
The focus in the report will be on adding value across the listed companys spectrum of decisions ranging from position-taking in particular securities to managing portfolio risk. The role of ethical behavior is incorporated into the study of financial markets, as well as portfolio management. Moral reasoning will be factored into portfolio management as well as environmental, multinational, and global issues affecting investments and investment performance…
By the end of this report, you are expected that your report will be illustrated, demonstrated, and analysis to:
1. Implement the mean-variance mathematics of portfolio optimization.
2. Understand and distinguish between concepts of risk underlying different models of asset returns such as CAPM, APT, benchmark factor models etc.
3. Understand the impact of behavioural biases and limits to arbitrage on market efficiency.
4. Value equity and fixed income securities using both fundamental and relative valuation approaches.
5. Be able to deal with real world data in order to solve practical investment problems.

Assessment Criteria:
In order to obtain a pass in this assessment , your report should be coverage the topics with detailed analysis in the topics shown herebelow :
01 Introduction to investment management
02 Investors, assets and markets
03 Real-world frictions, investment styles
04 Risk and return, expectations, pricing
05 Markowitz mean-variance analysis
06 Black-Litterman
07 OLS
08 CAPM, APT and factor models
09 Return predictability
10 Behavioural finance and limits to arbitrage
11 Introduction, risk free rate, market risk premium
12 Cost of capital (Equity, Debt and WACC)
13 Cash flow, growth, terminal value and dividend models
14 FCFE and FCFF valuation
15 Review of bond prices and yields
16 Term structure of interest rates
17 Bond portfolios and risk management
18 Structured products and Securitisation
19 The Financial Crisis
20 International Diversification