Business Finance Homework Help

turn an explanation on how well the portfolio did as compared to the market. Keep the memo to three/four-typed pages. Pretend you were a portfolio

manager and were confronted by irate, angry, disgruntled customers, or pleasantly surprised patrons.
One of the most important pieces of information would be the overall value of the portfolio. This
should be in the first paragraph or in a small table. Use your economic intuition and incorporate any
information, disclosures, and trends that possibly influenced the securities’ returns. Obviously over
11-weeks, your observation of an important trend will be limited. Also in your write-up there should
be some discussion explaining the following calculations.1 Finally, interpret the results for your
client. Again, the body of the paper is only 3-pages. What should you concentrate on the bonds? I
would focus on the differences in the maturity and the ratings. This possibly will explain the majority
of the performance .You should use footnotes as part of the narrative.1 At minimum have three footnotes. You should

also mention the websites from the research insight homework.
(i) A summary table detailing the final worth of your portfolio in $’s and in percentage change.
(ii) An excel spreadsheet showing the weekly changes in prices
(iii) Calculations showing the actual rate of return for the stock portfolio (Ending Price-Beginning
Price)/Beginning Price.
(iv) Calculations illustrating the required or expected rate of return for the stock portfolio (assume
the risk premium (Rm-Rf) is equal to 5%). Use the yield on a 30-year Treasury bond as an estimate
for the risk-free rate. If you cannot find a beta for the EFT or mutual fund, assume a beta of 1.
(v) Calculations showing the required and actual rates of return for the market proxy.
(vi) Calculations detailing the required and actual rates of return for each stock. (Note: The above
calculations are not all in the same time frame. Why? The required rates of return are calculated on
a yearly basis. The actual rates of return are calculated on a 13-week interval. Thus you will need to
annualize the actual rates of return.)
(vii) Graph the value of your stock/mutual fund/ETF portfolio on a weekly basis.
(viii) Graph the value of the bonds.
Everything that you turn in should be typed—including the calculations. Neatness counts. Late papers
are penalized 30%.