Portfolio and Risk Management Additional instructions: Your asset management firm have been approach by a high net worth client who wishes have just invested £200,000 in two portfolios of shares. You are the Portfolio Manager who have been asked by your senior financial executive to produce a report for this client regarding the performance of your client’s portfolios. You need to login to the portfolios using Virtual Trader. Each portfolio have an initial investment of £100,000 each which have all been invested for both portfolios. Although You can still buy and sell as many times as you wish until 13th March 2015. Portfolio 1 You do not need to consider any particular theory for this portfolio. You can simply invest in companies in which you have an interest or companies that you believe will perform well on the London Stock Exchange over the next few months. It is suggested that you read the financial pages of the newspapers or relevant websites to help you with this task. Additionally research using the new Bloomberg systems should be incorporated. Portfolio 2 For this portfolio you need to use the Capital Asset Pricing Model which can be applied in a number of ways. The choice is yours. The senior financial executive would like you to include the following in your report, which should be no more than 2,000 words in length: (1) A critical analysis of the Capital Asset Pricing Model. (2) A comparative analysis of the overall performance of both portfolios, including reference to specific share price fluctuations that occurred following events that affected the entire Stock Market or events that affected individual companies. Utilise Bloomberg as much as possible. (3) Recommendations as to what you would do differently in the future in order to improve the performance of your portfolios. Virtual Trader Rules and Portfolio: 1.
————————– 2. Under the tab “Portfoli” next to home,you will click on “my portfoli” which has already been created. 3. There you will see two portfolios which has already been created namely: Portfolio 1: OneUnited Portfolio 2: portfolio utd2 You will see £100,000 invested in different companies. 4. You can begin to open up the trades and investment of these companies and now begin to write your report on the above question. 5. For the purpose of this report, attention should be placed on the third question, which is “Recommendations as to what you would do differently in the future in order to improve the performance of your portfolios” (at least of 1,000 words).
