investments

  
Part 1 Tasks
In general terms, discuss how the following should be taken into consideration when constructing an investment portfolio:

Age 
Income 
Debt level and      assets 
Marital status 
Parental status 
Risk tolerance 
Time horizon 
General economic      conditions 

Part 2 Tasks
Task 1
Discuss the efficient market hypotheses, and answer the following question:

Does this      hypothesis support active trading or buying a passive stock index fund? 

Task 2

Discuss several      pieces of legislation that were enacted to protect against unethical investing      practices. 

Task 3
To illustrate your knowledge of portfolio construction, design a portfolio based on the following scenario:

Robert and Susan      Jenkins have inherited $200,000. They are aggressive investors with a      joint annual income of $100,000, no debt, and an additional $500,000 in      assets other than the $200,000 inheritance. 

Design 2 separate $200,000 portfolios based on the following scenarios:

The couple has 3      children between the ages of 9 and 17 years old, and they will use this      money to pay for their college education. 
The couple will      use the money to help fund retirement in 35 years. 

When designing your portfolios, be sure to keep the following in mind:

Each portfolio      should contain at least 3 common stocks, 1 American Depositary Receipt (ADR)      that you researched, and 3 bonds. 
Leaving a      portion of the portfolio in cash is an option if you feel that is it      appropriate. 
Charts and      graphs should be used where appropriate. 
Portfolio models      should be based on the Jenkins’ demographic profile and time horizon. 

Be sure to include the following in your discussion: 

Reasons for your      investment choices 
Stock and bond      investment risk and return factors 
The security      market line 
Beta and      standard deviation 
Bond duration      and interest rates 

Part 3 Tasks
Generate a brief discussion of the following concepts:

Dividend      discount model 
Capital asset      pricing model (CAPM) 

1500-1800 words