Business & Finance homework help

  

Part 1 Tasks

In general terms, discuss how the following should be taken into consideration when constructing an investment portfolio:

• Age 
• Income 
• Debt level and      assets 
• Marital status 
• Parental status 
• Risk tolerance 
• Time horizon 
• General economic      conditions 

Part 2 Tasks

Task 1

Discuss the efficient market hypotheses, and answer the following question:

• Does this      hypothesis support active trading or buying a passive stock index fund? 

Task 2

• Discuss several      pieces of legislation that were enacted to protect against unethical investing      practices. 

Task 3

To illustrate your knowledge of portfolio construction, design a portfolio based on the following scenario:

• Robert and Susan      Jenkins have inherited $200,000. They are aggressive investors with a      joint annual income of $100,000, no debt, and an additional $500,000 in      assets other than the $200,000 inheritance. 

Design 2 separate $200,000 portfolios based on the following scenarios:

• The couple has 3      children between the ages of 9 and 17 years old, and they will use this      money to pay for their college education. 
• The couple will      use the money to help fund retirement in 35 years. 

When designing your portfolios, be sure to keep the following in mind:

• Each portfolio      should contain at least 3 common stocks, 1 American Depositary Receipt (ADR)      that you researched, and 3 bonds. 
• Leaving a      portion of the portfolio in cash is an option if you feel that is it      appropriate. 
• Charts and      graphs should be used where appropriate. 
• Portfolio models      should be based on the Jenkins’ demographic profile and time horizon. 

Be sure to include the following in your discussion: 

• Reasons for your      investment choices 
• Stock and bond      investment risk and return factors 
• The security      market line 
• Beta and      standard deviation 
• Bond duration      and interest rates 

Part 3 Tasks

Generate a brief discussion of the following concepts:

• Dividend      discount model 
• Capital asset      pricing model (CAPM) 

1500-1800 words