Requirements for Optional Assignment_Spring 2011

Requirements for - • Common Stock – Small or Mid-Cap companies companies in emerging markets high-tech companies etc • Debt – Sovereign

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BUS 415: Investment and Portfolio Management SPRING 2011 Requirements for Optional Assignment Asset Allocation Decision Imagine that you are an investor and consider buying in a type of security. That decision will be based on you personal preferences and risk-aversion. The goal of this assignment is to pick a specific subgroup of financial instrument traded from a broad class of securities. Below is a list with those classes and the main type of securities that constitute them: Equities – Common and Preferred Stock Bonds – Floating Rate Bonds, Fixed Rate Bonds, Zero-Coupon Bond, etc. Investment Funds – Mutual Funds, Index Funds, Hedge Funds, Close-end Funds Structured Financial Instruments – Asset and Mortgage-Backed Securities, Collateralized Debt Obligation Derivatives – Options, Futures, Forwards, Swaps, Warrants Currencies Those classes are vast in nature and thus for your investment decision you need to concentrate further. Choose a subgroup within each security; here are some examples:
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Unformatted text preview: • Common Stock – Small or Mid-Cap companies, companies in emerging markets, high-tech companies, etc. • Debt – Sovereign Bonds, Government or Municipal Bonds, Corporate Bonds • Futures – Energy Sources, Metals, Food Commodities, etc. • Swaps – Credit Default Swaps, Interest Rate Swaps, etc. Briefly analyze the specifics of the subgroup and its value determinants. Describe the major markets or exchanges where it is traded - Chicago Board Options Exchange, Over-the-counter, Eurex, and etc. To enhance your asset allocation decision, analyze current trading patterns, volatility inherent, existing regulations, total value, etc. (you may provide some statistics and graphs here). What are the future prospects of this asset class or type of security? Note : You should turn in a short, consistent report with a maximum length of 2 pages, plus limited number of attachments. Although this assignment is individual you have the option to work in a team of two students....
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This note was uploaded on 09/25/2011 for the course FINA 4320 taught by Professor John during the Spring '11 term at Houston Baptist.

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