Assessment information:
You have recently been hired as an investment manager at a local hedge fund.
You have been assigned your first client who has a sum of £10,000 to be all invested immediately for a period of 10 years. The client expresses their desire to earn a minimum return of 14% per annum and to minimize their risk.
Your client instructed you to invest the fund in international markets. You decided to create a portfolio of at least 15 Global Equities chosen from a minimum of three Global Stock Exchanges.
a) Discuss your investment return and risk objectives and investment strategy
b) Discuss how you constructed your investment portfolio and selected shares? You need to critically evaluate the methods you used.
c) How did you manage the risks of your investment portfolio?
d) What is the impact of exchange rate volatility and market risk on your chosen portfolio?
How your assessment is graded:
Areas
Marks
Explanations and discussions of the investment risk and return objectives and Investment strategy
10
Critical evaluations and discussions of the theories and methods used in constructing investment portfolio and selecting shares.
40
Applications and explanations of theories and techniques used in managing risks of investment portfolio.
20
Discussions the impact of exchange rate volatility and market risk on the investment portfolio
20
Scholarly skills, including referencing, use of scholarly language, structure, presentation
10
Rationale for assessment design:
Investment brokers and agents require high level investment, market and economic information to manage and run high net worth investment funds.
In order to become successful investors, agents require understanding and appreciation of a number of trading and hedging strategies, including the timeliness of such those strategies.
The assessment, by making use of real life investment and stock market data, will require students to make a number of strategic investment decisions.
This outward facing, practical assessment will pit students’ knowledge and understanding of a number of investment and hedging strategies, including decision making and problem solving using real life financial data.
