- Risk Tolerance Questionnaire (5 sources at least). You can get some links of questionnaire from Week 1 Lecture slides on blackboard and if it’s less than 5 links, you need to search risk tolerance questionnaire on your own. The results of these questionnaire you’ll attach in your assignment appendices. You can also look for Charles Schwab questionnaire for your risk tolerance, which also provides asset allocation ideas.
- Investor Profiling (Investment Objectives) can be summarized in a table or chart.
- Economic Environment Analysis (for your selected country 2017 and for now) Economic Forecasting useful websites that you can search for:
World economic Outlook (IMF)
GoldmanSachs
UK Economic Outlook (pwc)
- Capital Market Line Concept and Capital Allocation Decision. You may use Efficient Frontier line concept here as well
Part B -1,200 words
(Lecture recordings are available for all these excel related calculations on blackboard)
- Efficient frontier line (by taking at least 2 stocks from your active portfolio construct EFL) – Also, you can use EFL in Part A of the assignment as well. Week 3
- Capital Market Line (CML)-Week 4
- Behavioral Biases (Prospect theory/ overconfidence/ confirmation bias)-Week 5
You may find behavioral bias examples here that can be relevant for your assignment discussion.
- Irrationality – Discuss your bias and link your discussion with theory. Week 6
- Capital Asset Pricing Model (CAPM) – Apply CAPM for your individual stocks of your active
portfolio- Week 7
- Stock Valuation – Dividend Discount Model (DDM) & Relative Evaluation. – Week 8
2
Teaching Assistant: Jamela Lasharpoor
Investment Management: Rational & Irrational Markets –AF6006
Part C – 1,200 words
Portfolio Performance Evaluation (Week 10)- Recordings are available on blackboard for calculations.
Use Risk-Adjusted Return Tools such as: 1. Sharpe Ratio
- Treynor Ratio
- Information Ratio
- Jenson Alpha
