Category Behavioural Finance assignment help

Portfolio Management – What are the mean returns and risk of a portfolio if the investment manager invests

Consider the following information about three assets:
Stock                                 Mean Return                                 Standard Deviation
Moose                                   10.00%                                               5.20%
Gnu                                        8.00%                                                 2.70%
Wildebeest                           12.00%                                               6.50%
a) What are the mean returns and risk of a portfolio if the investment manager invests in:
i. 25% in Moose and 75% in Gnu if the correlation between Moose & Gnu is 0.2?
ii...

Read More

Dividend Discount Model – Share Price Risk – Technical Analysis

Dividend Discount Model (DDM)
(a) Company A pays an annual dividend of 35p per share. The required rate of return is 11% p.a.

(i) If that level of dividend payment is expected to be constant into the future what is the intrinsic value (or fair price) of the share?
(ii) If the next dividend payment is expected to be 7% higher than the last, and if this rate of dividend growth is expected to be maintained over time, what is the intrinsic value of the share?

(b) Company B is a new company that is currently enjoying rapid growth. It is estimated that dividends will grow at an annual rate of 12% over the next four years. After that, the growth rate will fall to 6% p.a. and remain at that rate. The directors have just paid an annual dividend of £1.25.
Calculate the intrinsic value of the share ...

Read More

Financial Services – Explain the difference between ‘defined benefit’ and ‘defined contribution’ pension schemes

Question 1

a) Explain the difference between ‘defined benefit’ and ‘defined contribution’ pension schemes.
b) Compare them from the perspective of a member of a pension scheme.

Question 2
a) Explain Heuristic Simplification.
b) Give an example in support of the explanation.
c) Describe the benefits of understanding this aspect of Behavioural Finance.

Order Now - AllAssignmentHelp

Order Now – AllAssignmentHelp

Question 3

a) In relation to investment decision making, describe the practice of Asset Allocation.

b) Explain the key considerations when designing an asset allocation strategy for a client.

Question 4
A first-time home buyer makes an offer on a property of £165,000, which has been accepted by the vendor...

Read More