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GotoGlobeFundorMorningstarandselectsixmutualfunds,accordingtothefollowing

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Part1:MutualFunds(20marks);1. GotoGlobeFundorMorningstarandselectsixmutualfunds,accordingtothefollowing;requirements;oneindexfund;onedividendfund;oneglobalfund;threeequityfundsindifferentsectorssuchasenergy,technology,microcaps,income;etc.;2. Prepareatableshowingeachfundsloadfees(ifany),MER,andreturnoverone,three,andfive;yearsandfrominception.Identifywhichfundis,inyouropinion,thebesttoinvestinconsidering;shortandlongtermreturns,loadfees,andMERs.Explainwhyyoupickedthisfund.;Part2:InvestmentPortfolioReview(45markstotal);YourresponsetoPart2shouldbebetween750and1250words,withcompletecalculationsshown;whererequired.BasedonthestocksofthetwocompaniesyouchoseinAssignment2/3Preparationand;workedoninAssignment2,answerthefollowingquestions;1. Calculatethetotalreturnpercentageachievedforeachindividualstockfromthedayyouselected;thestocktothepresentormostrecentbusinessday.Usetheformula;EndSharePriceBeginningSharePrice+DividendsReceived(ifany)/BeginningSharePrice.;(5marks);2. Annualizethepercentagereturnforeachstock,thatis,calculatewhatyourreturnwouldbeifyou;heldthestockforoneyear.Todothis,takeyourreturnsfromabove,dividebythenumberof;daysthesharewasheld,andmultiplyby365.;(2marks);3. Calculatetheannualizedreturnfortheportfolio.(Useanequalweightingforeachstock.)Was;yourreturnhigherorlowerthantherateofinflation?(3marks);4. Compareyourannualizedreturnwiththatoftheindexfromwhichyouhavechosenyourstocks.;Forexample,ifyourstockswerechosenfromtheTSX,compareyourreturnwiththatofthe;S&P/TSXCompositeindexoverthepastyear.Ifyouchosestocksfrommorethanoneindex,you;mayhavetocompareonereturnwithoneindexandtheotherreturnwithanotherindex.If,for;example,youhaveonestockfromtheTSX,youwouldcompareyourstockaverageannual;returnwiththeS&P/TSXCompositeindex.Then,supposingtheotherstockyouchosewas;FNCE249v4;Assignment 3;Sept 30, 2013;tradedontheNYSE,youwouldcomparethesereturnswiththeS&P500index.Inone;paragraph,explainwhyeachreturnisgreaterorlessthantheindex.(10marks);5. Foreachofyourstocks,identify(inonesentence)themostsignificantvariablethatexplainsthe;performanceofthestock.Forexample,ifyouheldU.S.bankstockandyourstockhasgenerated;a10%loss,youmightidentifytheU.S.housingmarketasthemostsignificantvariableaffecting;thestocksaveragereturn.(5marks);6. Intwoparagraphs,describetheconceptofreturnversusrisk,andexplainhowyouwoulduseit;inselectinganewinvestmentportfolio.Explainhowandwhyyouused(ordidnotuse)this;conceptwhenyouchoseyouroriginaltwostocks.Inyourexplanation,ensurethatyouanswer;thefollowingquestions;a. Whatwouldyoudodifferentlyifyouweretochooseanothertwostocksforyourportfolio?;Explainyouranswer.(10marks);b. Whatspecificactionscouldyoutakeinthefuturewhenchoosingstockinvestmentsto;reduceriskandincreasetherewardinyourportfolio?;(10marks);Part3:LearningfromtheMasters(35markstotal);YourresponsetoPart3shouldbenomorethan1000words,withcompletecalculationsshownwhere;required.UsethelessonnotesfromLesson6toanswerthefollowingquestions.Ifappropriate,youmay;usetablestopresentinformation.;1. ComparetheinvestmentphilosophyyouusedtoselectyourtwostockswiththatofBenjamin;Graham.WhatwouldBenjaminGrahamsayaboutyourstockpicks?Provideareasonyour;choicemaybedifferentthanMr.Grahams.(10marks);2. WarrenBuffettdoesnotinvestinInternetcompaniesduetothedifficultyinpredictingtheirfuture;earnings.ExplaintoMr.BuffetthowhecouldvalueanInternetcompanythatatpresenthasno;cashflow.Usefinancialcalculationsasappropriatetoanswerthisquestion.(10marks);3. ChoosefiveofthemasterslistedinLesson6.Compareandcontrasttheirinvestmentstyles;usingatableifappropriate.Whichofthemastersinvestmentstylesdoyoubelievewillbemost;effectiveoverthenexttenyears?Asaninvestmentadvisor,whichoftheseinvestmentstyles;wouldyouuseduringabullmarket?Duringabearmarket?Besuretofullyexplaineachofyour;responses.(15marks);FNCE249v4;Assignment 3;Sept 30, 2013;View Full Attachment

 

Paper#28736 | Written in 18-Jul-2015

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