John Stewart & ABC Portfolio Analysis

Anonymous

Question Description

700-900 words

John Stewart has recently joined ABC in the capacity of an investment advisor. As a way to attract additional clients, John has asked for your help in preparing some educational material for a seminar taking place later this month.

He has asked you put together a report on the following investments and calculate the returns of these investments (including dollar values and percentages) to illustrate how they work.

Assignment

1. Perform the 5 calculations listed below:
• Show all of your work as well as any formulas that you used.
• If you used MS Excel to arrive at your answers, then you must provide an explanation of your methodology. A stock that does not pay a dividend of which you buy 100 shares for \$25.00 per share and sell the 100 shares for \$27.50 per share a year later. You pay the \$50.00 commission when you sell the securities. A 5-year bond that you purchase for \$1,000 pays a 6% yearly rate. It is paid semiannually, and you hold the bond until maturity. The current yield on a bond that is priced at \$89 has a 6% coupon. The yield-to-maturity (YTM) on a 7.25% (\$1,000 par value) bond that has 10 years remaining to maturity, currently trading in the market at \$825. The holding period return (HPR) for 1,000 shares of a no-load mutual fund currently selling at an NAV of \$11, purchased a year ago at an NAV of \$10.50 per share, including \$300 of distributed investment income dividends and capital gains dividends of \$350.
2. Next, answer the following questions:
• Explain systematic and unsystematic (also known as nonsystematic) risk.
• What are the different types of investments a person can make?
• Explain a stock's beta coefficient and how it ties into systematic versus unsystematic risk.
• What are the differences between the various types of bonds?
• What do bond ratings indicate, and what 2 major agencies are in charge of assigning these ratings?
3. Compile your calculations, MS Excel tables and explanations (if applicable), and your responses to the 5 points above into a single Word document.

Robert__F
School: UIUC

Please let me know if there is anything needs to be changed or added. I will be also appreciated that you can let...

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Anonymous
Thanks, good work

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