Management homework help

/in /by

FINC6001: Finance–

MAJORASSIGNMENT 

Weighting:20%(report)+10%(oralpresentation)

Don't use plagiarized sources. Get Your Custom Essay on
Management homework help
Just from $15/Page
Order Essay

Being a scarce resource (for most), money needs to be properly managed. The second halfofthisUnitofStudyhasbeendevotedtoconceptsandtheoriesassociatedwithinvestmentmanagement that aim to assist us in understanding portfolio performance evaluation andasset allocation.Management homework help

In the first part of the Major Assignment (written report), we will be exploring differentwaystoassesstheworkofassetmanagers;whilst,inthesecondpart(oralpresentation),wewill learnhowtobuildportfolios.

PartA(WRITTENREPORT)

 

Performance evaluation is an integral part of financial markets. Efficient allocation of resourcesdependsontheabilityofinvestorstodirecttheircapitaltothoseidentifiedasthebestmanagers.Management homework help. Thisraises thefollowingquestion:howcanportfolioperformancebemeasured?

To address the question above, we will analyse a sample of exchange-traded funds (ETFs) available inAustralia. ETFs are similar to mutual funds; however, they allow investors to more easily buy and sellthe corresponding portfolios on an exchange (just like they would with individual stocks). These havegrown considerably in popularity since their inception in 1993. By 2020, about $7.7 trillion wasinvested in more than 1,800 ETFs in the US, which is the world’s largest market in terms of assetsundermanagement.

Although ETFs were originally created as passive portfolios aimed at tracking specific indexes, therealsoexistsactivelymanagedETFswithotherinvestmentobjectives.Forinstance,focusingonattributes such as value, growth, dividend yield, liquidity, and volatility, to cite a few. To assess theperformance of ETFs, therefore, we need to first understand their goals and the benchmark againstwhichtocomparetheperformanceobserved. Management homework help

Required:

  1. You will be assigned a random list of five ETFs to analyse for this Major Assignment.Please follow the instructions on Canvas carefully on how to generate this list. DescribethekeycharacteristicsofeachETF.Explaintheirinvestmentobjectivesandgoalsclearly.
  1. Select (an) appropriate benchmark(s) to compare the performance of your five ETFs. Inyour report,you should justify your choiceofthe(se)benchmark(s).
  1. CalculateandcomparethemonthlyreturnsforthefiveETFsandtheRussell3000marketindex, as a proxy of the market portfolio, over the period from January 2018 untilDecember2020.
  1. Selectanappropriateproxyforarisk-freeasset.Justifyyourdatachoices. Management homework help
  1. Calculatethefollowingrisk-adjustedperformancemetrics:
    1. Sharperatio
    2. Treynormeasure
    3. Jensen’salpha(usingtheFama-French3-factormodelto calculatetheexpectedreturn)
    4. Informationratio
    5. Morningstarrisk-adjusted rating(using2 asthecoefficientofrisk aversion)
  1. DiscusshoweachETFhasperformedbasedonthesedifferentrisk-adjustedperformancemetrics.Explaintheconceptualdifferencesacrossthemetricsbeingutilisedforevaluation. Determine whether there is any evidence of market timing ability by theportfoliomanagers ofthesefiveETFs.
  1. Determine the exposure of these five ETFs to style portfolios based on book-to-marketratio, earnings-to-price ratio, and dividend yield. Describe the particular style(s) that isdrivingtheperformanceofyourETFs.CompareanddiscussanydifferencesbetweenthefiveETFs. Management homework help
  1. Provide a final recommendation as to which ETF(s) you would advise an investor topurchase.Youwillneedtoprovideanexplanationastohowyoureachedyourrecommendationandany potentialpitfalls of yourrecommendation.

    ORDER A PLAGIARISM-FREE PAPER NOW

AssessmentCriteria:

  1. Conformingwithinstructions(e.g.wordlength,font,otherinstructions)
  2. Presentation,communication&style(written)
  3. Clarityofexpression(incl.accuracy,spelling,grammar,punctuation)
  4. Referencing
  5. Useofliterature/knowledgeoftheory
  6. Data/informationgathering/processing
  7. Conclusions
  8. Analysis
  9. Problemsolving
  10. Reflection/evaluation. Management homework help

FormattingandPresentation:

  1. The report should be a maximum of 10 pages in length with 1.5 line spacing and size 12Arial or Calibri Font. It should have normal-sized (2.54cm) margins on all sides. PleaseMarkswillbereducedby10%foreachpageyouexceedthe page limit. Hence, your mark will be reduced to zero if the report exceeds 20 pages.Youwillbepenalisedforinappropriateformatting.
  2. You will need to undertake research on industry and/or academic sources to justify yourchoicesandconclusions.Yourreferencesdonotneedtobeallacademicjournalarticles. Management homework help
  3. EnsureyouAllreportsmustincludealistofreferencesinacademicformusingtheAPA7thmethod. Further information on the APA referencing style can be found here:https://libguides.library.usyd.edu.au/citation/apa7. You will be penalised if you forget toreference yoursourcesoruseinappropriate referencing.
  4. Pay particular attention to presentation. A component of your mark will be based onpresentation.Avoidoverdoingformattingandensurethatthereportisveryclear,logical,and professional. Pay attention to grammar. Clear and logical presentation is a majorchallengein report preparation.
  5. Preparing a concise report poses a major challenge. Brevity and conciseness are keyingredientsofahighlysuccessfulreport.Everypartofthereportshouldsomehowaddtotheendresult; otherwise,itissuperfluous anddistracting.
  6. Use headings in the report to separate key ideas. Using paragraphs will also assist withstructuringideas.
  7. ThereportmustbesubmittedasaPDFYoumustsubmitthereportelectronicallyviatheTurnitinlinkonCanvas.Excelspreadsheetswithallyourcalculationsmust be submitted as a .xlsx workbook. You must submit two files electronically via thelinkonCanvas.Management homework help

Thepagelimitforthereportis10 pages.

Whatisincluded inthe10 pagelimit?

  • Reportbody
  • Tables
  • Diagrams

Whatisexcludedfromthe10page limit?

  • Titlepage
  • Tableofcontents
  • Executivesummary
  • Referencelist
  • Appendices(Appendicesshouldbeusedsparinglyandonlyusedtoprovideinformationtothe reader, whereappropriate)

MarkingGuide:

ETFdescription                                                                                                            /4 marks

Dataselectionandreturncalculations                                                                          /12 marks

Risk-adjustedperformancemetrics                                                                             /7marks

Markettiming                                                                                                              /3marks

Styleexposures                                                                                                            /6marks

Finalrecommendation                                                                                                /4marks

Presentationandstyleofreport                                                                                     /4marks 

Penalties

Inappropriateuseofliterature                                                              upto -4marks

Incorrectreferencing                                                                          upto -4marks

Failuretocomplywithformattingrequirements                                   upto-4 marks

FailuretosubmitExcelfilewithcalculations                                           -20marks

Eachpage overthe10pagelimit .  Management homework help                                                        -4marksperpage