{"id":8366,"date":"2023-03-06T01:51:24","date_gmt":"2023-03-06T01:51:24","guid":{"rendered":"https:\/\/www.goodacademic.com\/blog\/questions\/finc605-week-2-portfolio-risk-management-techniques-and-ethical-considerations\/"},"modified":"2023-03-06T01:51:24","modified_gmt":"2023-03-06T01:51:24","slug":"finc605-week-2-portfolio-risk-management-techniques-and-ethical-considerations","status":"publish","type":"questions","link":"https:\/\/www.goodacademic.com\/blog\/questions\/finc605-week-2-portfolio-risk-management-techniques-and-ethical-considerations\/","title":{"rendered":"FINC605 Week 2 Portfolio Risk Management Techniques and Ethical Considerations"},"content":{"rendered":"
\n Learning Goal: <\/b>I’m working on a management project and need the explanation and answer to help me learn.<\/p>\n

Description<\/span><\/p>\n

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.<\/p>\n

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.<\/p>\n

Assignment<\/p>\n

    \n
  1. Perform the 5 calculations listed below:\n
      \n
    • Show all of your work as well as any formulas that you used.<\/li>\n
    • If you used MS Excel to arrive at your answers, then you must provide an explanation of your methodology.
      \n\n\n\n\n\n\n\n
      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.<\/td>\n<\/tr>\n
      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.<\/td>\n<\/tr>\n
      The current yield on a bond that is priced at $89 has a 6% coupon.<\/td>\n<\/tr>\n
      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.<\/td>\n<\/tr>\n
      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.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/li>\n<\/ul>\n<\/li>\n
    • Next, answer the following questions:\n
        \n
      • Explain systematic and unsystematic (also known as nonsystematic<\/em>) risk.<\/li>\n
      • What are the different types of investments a person can make?<\/li>\n
      • Explain a stock’s beta coefficient and how it ties into systematic versus unsystematic risk.<\/li>\n
      • What are the differences between the various types of bonds?<\/li>\n
      • What do bond ratings indicate, and what 2 major agencies are in charge of assigning these ratings?<\/li>\n<\/ul>\n<\/li>\n
      • Compile your calculations, MS Excel tables and explanations (if applicable), and your responses to the 5 points above into a single Word document.<\/li>\n<\/ol>\n

        Please submit your assignment.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

        Learning Goal: I’m working on a management project and need the explanation and answer to help me learn. Description 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 […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","meta":[],"disciplines":[647],"paper_types":[],"tagged":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions\/8366"}],"collection":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions"}],"about":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/types\/questions"}],"author":[{"embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/comments?post=8366"}],"version-history":[{"count":0,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions\/8366\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/media?parent=8366"}],"wp:term":[{"taxonomy":"disciplines","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/disciplines?post=8366"},{"taxonomy":"paper_types","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/paper_types?post=8366"},{"taxonomy":"tagged","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/tagged?post=8366"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}