Rasmussen Portfolio Analyst at The Bank of Wealth Investment Advisors

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Business Finance

Rasmussen University

Description

Instructions

You have been hired as a Portfolio Analyst at the Bank of Wealth Investment Advisors. Your supervising Portfolio Manager asked you to prepare a hypothetical portfolio that encompasses the securities concepts discussed in this course.

You will develop a PowerPoint presentation that explains your recommendation for a hypothetical portfolio that you would like Bank of Wealth to launch. Your presentation will include:

  • The evaluation of traditional and non-traditional holdings
  • Risk mitigation and avoidance techniques that can be used for the portfolio
  • A recommendation on the type of investor the portfolio would be suited for

A PowerPoint presentation will provide brief and clear information on the required subjects. Typically, bullet points are used in a PowerPoint presentation; however, since the Portfolio Manager needs to understand the analysis thoroughly, your presentation should be more detailed and offer supporting evidence, including a reference list. Be sure to use the Notes section under each slide to incorporate details. Here is a link to information about adding speaker notes. You can use the following link for additional help with PowerPoint.

You will also prepare an executive summary document that highlights your analysis. In it, introduce some background on the rationale for your holding selections. This link offers some guides on how to create an executive summary. The summary should not be more than two pages long.

  1. The presentation should give the Portfolio Manager enough information to follow your recommendations and holdings for the new portfolio. Be sure to use audience-specific language and tone in the presentation. Remember, you are assembling this presentation for the Portfolio Manager and the senior leadership.
  2. Be creative by developing a "catchy" name for your portfolio, and make your presentation fun, yet still clearly organized.

The following six competencies will be addressed in your presentation:

  • Differentiate diverse market types to utilize market mechanics.
    • Include a discussion of how the current securities regulations would affect your portfolio. Also, you will need to explain on which market your new portfolio will be launched.
  • Evaluate equity and fixed income securities.
  • Examine types of securities and asset classes.
    • In this section, select which securities will be held in your portfolio (specifically, whether you are going to hold stocks, bonds, mutual funds, etc.) and non-traditional assets. Be sure to explain why your mix is a good fit for your portfolio.
  • Compare forms of fundamental and technical analyses.
    • Explain the purpose of technical and fundamental analyses of your selected assets in the portfolio.
  • Appraise the uses of derivative instruments to construct practical applications for investors.
    • Explain your rationale for the inclusion or exclusion of derivatives from your portfolio.
  • Evaluate multiple risk types and their impact on different securities.
    • Select and explain your risk mitigation and avoidance techniques that you will utilize for this portfolio.

APA formatting for the reference list, and proper grammar, punctuation, and form are required.

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Explanation & Answer

Attached.

Investment Portfolio
Name
Institution

Course
date

Diverse Market Types To Utilize Market Mechanics.


Bonds and stocks are securities traded in the securities market
through different market platforms



Stock are the shares and equity of public listed companies



Bonds are fixed income investments made on loan basis with
corporates and government entities.



Stock markets is a place where investors buy equities and shares



These securities include derivatives, futures, stocks, and futures.



Buying stocks gives an investor ownership of the company



Investors hope that the value of the stocks will increases as time
goes by

How the current securities regulations would affect my portfolio.


The use of fair values for regulation affects the incentives and behavior
of financial institutions



The historically unrealized gains and losses are not accounted for by the
regulations



The removal of the accumulated other comprehensive income (AOCI)
filter for investment securities are usually accounted for as “available
for sale.



capital buffer/



The banks would respond by shifting to less risk-sensitive securities.



Banks would make greater use of derivatives to hedge the portfolio risk

The market where the new portfolio will be launched


Bond, debt, or credit securities signify an amount lent to the
corporates or government agencies which attract interest



Bonds such as Treasury bond provided regular income in form of
interests



Bonds are effective portfolio investments for those saving for
their retirements, children’s education, and long term life plans.



Bond markets attracts pension and endowment funds foundations,
hedge funds, investment banks, and asset management firms.

Evaluate equity and fixed income securities.
Equity Securities Market


Equity markets provides a place to buy and sell sock through regular trading exchange



All stocks in the equity market are volatile and thus have highs and lows that affect
their value



Equity markets attracts substantial risks but have better return on investment



One has to undertake extensive market research to earn better returns and avoid
suffering loses in the equity markets.



Equity portfolios have a substantially higher turnover arte in terms of holdings.



An equity holder is a co-owner of the corporation.



They are traded centrally in the stock market.

Evaluate equity and fixed income securities.

Fixed Income Security Markets


Fixed-income securities are debt or bond securities issued by
corporation or government agencies.



They may also include mortgage debt instruments



Fixed income securities market is a capital market that provides
capital to finance long term investments



This securities market are less risky with lower return on
investments



They are traded over the counter

Types Of Securities And Asset Classes


The four traditional asset classes are bonds or fixe interest securities, shares,
property, and cash



Mixing more than one class of assets creates a diversified portfolio



Portfolio diversifications spreads the risks associated with the portfolios



Through asset allocation each asset class gets a proportionate part of the
portfolio



Portfolio risk management controls the up and down movement or risks.



Cash, fixed-interest, property, and shares ...


Anonymous
Excellent! Definitely coming back for more study materials.

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